Caretaker oil minister to represent Iran at Opec

The man President Mahmoud Ahmadinejad put in charge of the Oil Ministry less than a week ago will represent Iran at this week's Opec meeting, an Oil Ministry official told Reuters on Monday.

Confirming a report in the English language daily Tehran Times, the official said Mohammad Aliabadi would attend the meeting in Vienna on Wednesday, ending weeks of speculation about who would represent the group's second-largest producer.

Iran is likely to counter pressure from Gulf Arab nations at the meeting to increase oil output to calm high prices which consumer countries say threaten the global economic recovery.

Uncertainty about who would represent the Islamic Republic began when Ahmadinejad sacked Oil Minister Massoud Mirkazemi last month and put himself temporarily in charge.

Analysts said the prospect of Iran's West-baiting president at Opec would lessen the likelihood of any output hike.

But under pressure from parliament and the state constitutional watchdog, which both said he had no legal right to head the ministry, Ahmadinejad appointed ally Aliabadi as caretaker minister last Thursday.

That did not quell domestic criticisms. The head of parliament's energy committee said Aliabadi, head of Iran's Olympic Committee, was the "worst choice" for the job whose lack of oil experience could harm Iran's vital energy industry.

Iran's envoy to Opec was quoted as saying on Monday Tehran opposed the output increase which more dovish Opec members are seeking.

"There is no need to increase Opec production in the 159th meeting of this organisation," state broadcaster IRIB quoted Khatibi as saying, citing the Oil Ministry website Shana.

Opec delegates have told Reuters that Gulf Arab Opec members, led by Saudi Arabia, will push for an increase in supply, some talking of at least one million barrels a day.

But Khatibi said an increase in supply could lead to an unjustified steep drop in oil prices.

"It is not fair that the market situation changes to over-supply," he said. "The decrease of oil prices means that producers should be more alert before supplying more oil to the market."