Iranian Official Says OPEC May Slash Oil Output

Iran's OPEC governor says the Organization of Petroleum Exporting Countries may decide to slash its oil output during its May 28 meeting in Vienna.

Mohammad-Ali Khatibi made the remarks while OPEC members have already agreed to reduce their output since September by about 4.2 million barrels per day or about Five per cent of world supply.

He said the 13-member organization plans to increase its cooperation with non-OPEC producers such as Russia to regulate the oil market.

Khatibi also voiced concern over the current level of stockpiling oil in the industrial countries.

"Currently the level of stockpiling oil in the most industrial countries is increasing," Mehr news agency quoted Khatibi as saying on Friday.

The comment came as oil prices increased more that one dollar a barrel on Friday.

US sweet crude for June delivery jumped $1.02 to $57.73 a barrel, while London Brent crude gained $1.12 to $57.59 in Singapore.

Oil consumption has fallen as a result of the global financial meltdown, with crude prices now around $58 a barrel, from a record high of over $147 in July 2008.

Copyright BBC. BBC Monitoring via COMTEX.