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Fri 31 Jul 2009 02:21 PM

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Some in OPEC may push for cut if price drops - Iran

Iran's OPEC governor urges members to respect the cartel's crude production quotas.

A drop in oil prices may prompt some OPEC members to press for a further production cut from the group, Iran's OPEC governor told the official IRNA news agency."If the prices continue to decrease, some OPEC members may ask for a further production cut," Mohammad Ali Khatibi was quoted as saying in the Friday report.

" ... Because of the international economic situation, oil prices are not expected to increase by the end of the year (January)," he said. "Also for the same reason demand is not expected to increase."

Khatibi called on OPEC members to respect the cartel's crude production quotas.

"All members should respect the quotas. In that case oil prices will increase," Khatibi said.

Oil prices retreated on Friday, to near $66 a barrel for US crude futures.

Khatibi said global demand for crude will increase, but not until March.

"It is expected that global economic situation will improve next year and therefore demand for oil will increase," he said.

On Thursday, oil jumped more than five percent, to register its biggest one day gain since early April, after US data showed the number of workers staying on jobless rolls fell to the lowest in three months last week. (Reuters)

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