There will be no need to extend OPEC's oil output cut plan unless there is a drop in prices, according to Iran's oil minister on Monday.
In remarks carried by the ministry's official website Shana, Bijan Zanganeh said no decision would be made regarding this issue in the upcoming OPEC meeting on June 22 in Vienna 'because the matter is unlikely to be included in the agenda.'
If prices keep growing at the current pace, an extension of the deal will seem unnecessary, Zanganeh said.
'High oil prices, even in the mid-term, would destabilize the prices and put pressure on them against OPEC's interests,' he added.
Cuts by OPEC and non-OPEC producers have helped push up oil prices following a prolonged rout in crude oil prices that began in the summer of 2014.
-Trump himself 'favors' high oil prices
Zanganeh also slammed U.S. President Donald Trump's recent accusations against OPEC, saying the upward trend in oil prices had 'nothing to do' with the producer group.
Trump slapped OPEC over high oil prices on Friday, firing off a tweet which said: 'Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea. Oil prices are artificially Very High! No good and will not be accepted!'
Zanganeh said Trump's remarks were addressed to 'a certain group of Americans who may be unhappy with rising oil prices, while he would approve of increased prices.'
'Our behind-the-scenes information suggests that Mr. Trump favors increasing prices so that he can ramp up the U.S.'s crude and tight oil output as well as the country's tax income to generate more jobs,' he added.
The minister accused Trump of adopting a 'dubious' stance towards oil prices saying, 'On the one hand, Mr. Trump tries to improve the price of oil while, on the other, he blames OPEC for the upward trend of prices which do not have to do with the organization.'
Zanganeh said Trump had reached an understanding with 'certain' OPEC members to keep prices high.
The oil production cut agreement is set to expire at the end of 2018, but could also be extended into next year as OPEC and non-OPEC producers still negotiate to further trim the glut of oil supply in the global market.
The price of Brent crude climbed above $75 per barrel on Monday, and started trading at $75.08 per barrel on Tuesday morning.
International benchmark Brent crude hit $75.10 per barrel mark at 1520EST (1920GMT) on Monday for a daily gain of 1.3 percent.
American benchmark West Texas Intermediate climbed as high as $69.17 a barrel at around 1008GMT on Tuesday, after having posted a daily increase of around 1 percent the previous day.
By Hale Turkes
Anadolu Agency
energy@aa.com.tr