OPEC will welcome Iran’s return to oil market after sanctions lifted: Opec

Opec secretary general Haitham Al Ghais Monday said the organisation will welcome full return of Iran to the oil market when sanctions are lifted.

Iran is an OPEC member, although its oil exports are subject to sanctions by the United States aimed at curbing the nuclear programme of Tehran.

Al Ghais, who is visiting Tehran for the first time, said Iran has the capacity to bring on significant production volumes within a short period of time.

"We believe that Iran is a responsible player amongst its family members, the countries in the OPEC group. I’m sure there will be good work together, in synchronization, to ensure that the market will remain balanced as OPEC has continued to do over the past many years," Reuters reported cited him as saying in Iranian oil ministry's website SHANA.

When asked about OPEC’s voluntary production cut and its effect on oil prices, Ghais said, "In OPEC...we don’t target a certain price level. All our actions, all our decisions are made in order to have a good balance between global oil demand and global oil supply."

In a surprise move in early April, Saudi Arabia and other members of OPEC , which comprises OPEC and allies including Russia, announced further oil output cuts of around 1.2 million barrels per day, bringing the total volume of cuts by OPEC to 3.66 million barrels per day.

Meanwhile, Oil prices edged higher in choppy trading today, as markets weighed a tentative US debt ceiling deal that would avert a default by the world's top oil consumer against further Federal Reserve interest rate hikes that could curb energy demand.

Brent crude futures settled up 12 cents, or 0.2%, to $77.07 a barrel, while US West Texas Intermediate crude was up 25 cents, or 0.3%,at $72.92 a barrel.