High oil prices not damaging world economy: Iranian Oil Minister

Caracas (Platts)--31May2006

High oil prices are not yet having a damaging impact on the global
economy, Iranian Oil Minister Kazem Vaziri Hamaneh said Wednesday.

Speaking to reporters in Caracas a day ahead of an OPEC meeting, Vaziri
Hamaneh said "there is no effect so far on the world economy" from the high
crude prices.

Despite high prices, which have also been volatile in recent months, the
minster said there was no shortage of oil on the world market.

"Supplies are beyond demand and this is creating a real concern for the
months ahead," the minister added.

On Saturday Vaziri Hamaneh said OPEC was likely to leave current crude
output levels unchanged when it meets Thursday.

The Iranian minister played down the prospect of Iran withholding its oil
exports in the event of any possible sanctions against the country resulting
from its ongoing stand-off with the US and Europe over its nuclear program.

"There is no issue of sanctions so far so there is no need to talk about
it," he said.

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