Gulf Times quoted Mr Gholam Hossein Nozari Iranian oil minister as saying that Iran will back a plan to cut oil production at next month's OPEC meeting. Mr Nozari said that "There has been always a periodic cut in the second quarter of the year and it is predicted that OPEC will decrease its production at the next meeting."

OPEC left its official daily output ceiling at 29.67 million barrels, despite US calls for an output increase to reduce high oil prices that Western countries fear will stunt economic growth and fuel inflation.

Mr Chekib Khelil president of OPEC president said that the cartel would not approve an increase in output at its next ministerial meeting. OPEC's basket price of crude oil, based on production in 12 different countries, has reached a new record of USD US94.23.

In its February report, OPEC lowered its projections for a growth in oil demand this year in response to a slowdown in world economic momentum.