Opec ministers will concentrate on quota compliance rather than cutting official production ceilings to combat falling oil prices when they meet in Cairo this week, Iran's oil minister was quoted as saying on Monday.
"I think the current production ceiling will be maintained at the Cairo meeting and the discussions will mostly focus on the compliance of the Opec members with their quotas," Bijan Zanganeh told reporters.
Oil prices fell 14 per cent last week on signs of healthier US winter fuel inventories prompting some Opec ministers to say the oil cartel may consider cutting production quotas.
Iran, the cartel's second largest producer after Saudi Arabia, has expressed repeated concern in recent weeks about oversupply of crude in the oil markets, which it has put at two million barrels a day (bpd).
A Reuters survey of October's output for the group's 10 members with quotas put total production about 900,000 bpd over the November ceiling of 27 million bpd.
Earlier on Monday Mr Zanganeh had hinted the Organisation of the Petroleum Exporting Countries (Opec) might consider cutting quotas and not just rein in oversupply above official quota limits.
"We'll discuss everything at this Opec meeting. Everything is still open," he said.
Speaking to reporters on the sidelines of an oil and gas conference in Tehran, Mr Zanganeh said Opec "must be very concerned about prices".
"The first step is to be committed to what Opec has decided and for members to observe their production quotas," he said.
"In the second instance we should decide what to do for the next quarter," he added.
The Opec meeting in Cairo begins on Friday to plan production policy for the first quarter of 2005.
"Oil demand is already being met with the oil produced. Reserves are in a good position," Mr Zanganeh said.
"The recent reduction in prices shows the market is reacting, although it is the beginning of winter where consumption is high.
"The trend of prices requires us to be very cautious. Prices could go up one or two dollars (a barrel) with an incident. It's unstable," he added.
Mr Zanganeh said there was still no consensus within Opec in favour of altering the cartel's price band target.
Some Opec members, including Venezuela, have suggested raising the oil price band target of $22 to $28 a barrel to a minimum of $30 a barrel.
Analysts have said Opec may be spurred into cutting production by the weaker US dollar, which reduces their purchasing power, and by deep discounts for its mostly heavy, sour crude.
But Mr Zanganeh, asked what he considered a "fair price" for crude at the moment, replied: "The one in the market."