Iran is reviewing its crude output but no decision has been taken yet on any changes, Oil Minister Gholamhossein Nozari said on Tuesday following a report it planned cuts of up to 1 million barrels per day (bpd).
Senior Iranian officials could not be reached for immediate comment as many were involved in a high-level managerial meeting at the oil ministry, an Iranian industry source told Reuters.
Iran's semi-official Fars News Agency had quoted an informed source as saying the world's fourth-largest oil producer would start reducing output next month, probably by 400,000 to one million barrels per day, "in line with preventing selling of crude."
Asked about the report, an official at the Oil Ministry's public relations office told Reuters: "The oil minister said that Iran is reviewing its crude output but reports on any decision are not correct."
"No decision has been taken yet," he quoted Nozari as saying.
In another key development on Tuesday, an Oil Ministry source said Iran will replace its long-time governor to the Organization of the Petroleum Exporting Countries (OPEC).
Hossein Kazempour Ardebili is to be replaced as Iran's OPEC governor by senior Iranian energy official Mohammad Ali Khatibi, the source said.
Nozari said in March that oil output from Iran, OPEC's second-largest exporter and a price hawk, had hit 4.203 million bpd, the highest level since its 1979 Islamic revolution.
The previous record was 4.184 million bpd in February. He last year said Iran aimed to increase its oil output capacity to 4.5 million bpd in two years.
Prior to the revolution and the 1980-88 war with neighbouring Iraq, Iran produced roughly six million bpd.
Fars quoted its source as saying: "Starting next month Iran will cut its crude production, probably by 400,000 to one million barrels." The report seemed to refer to the Iranian month which starts on May 21.
"The Islamic Republic of Iran, in line with preventing selling of crude, intends to cut its daily oil production ... from next month," Fars said, adding the exact amount to be cut would soon be announced by officials.
Iran has repeatedly rejected Western calls for OPEC to boost output, saying rising oil prices on world markets are due to the falling U.S. dollar and other factors outside its control.
In 2006, Iran embarked on a multi-billion dollar, five-year programme to revamp and expand its refining system to three million bpd from around 1.6 million bpd now. But analysts say sanctions and insufficient funding are thwarting Iran's ambitious plans to nearly double domestic oil refinery capacity to end its dependency on expensive imported fuels.