Vienna, January 31:

Organisation of the Petroleum Exporting Countries (OPEC) members Libya and Venezuela warned today that oil prices would rise, if Iran was referred to the United Nations Security Council (UNSC) over its nuclear programme.

When asked on the sidelines of an OPEC meeting in Vienna what the impact would be of such a referral, Libyan energy secretary Fathi Hamed bin Shatwan said, a ‘very big effect’. His Venezuelan counterpart Rafael Ramirez agreed, “If the pressure over Iran continues, the price will be higher.” The comments came after the five permanent UNSC members had agreed today to bring Iran before the council over its disputed nuclear programme. Iran could face sanctions in principle.

OPEC president Edmund Daukoru, who is also Nigeria’s presidential oil advisor, was more guarded about the possible effect of Iran being brought before the Security Council. “Nobody can really foresee how that is going to” impact prices, Daukoru said. Libya’s Shatwan said a recent spike in the price of crude had been caused by problems over Iran, Nigeria and Iraq rather than by fundamental conditions in the market.

“So all this problem now starts to effect the market very highly. Everybody’s frightened that something will happen, and wants to secure supply. So that’s why prices are going high,” the minister said.

The ministers were speaking as the 11-nation OPEC prepared to meet in the Austrian capital to discuss oil production amid stubbornly high oil prices. Members of the cartel have already indicated they will keep oil production at a near record high point of 28.0 million barrels per day (bpd) despite earlier calls by Iran to trim the production ceiling.

Shatwan doubted that the OPEC decision would have any impact on the market. “It’s just keeping everything as it is. As we know, the problem of high price is not due to fundamentals, but due to problems in Iran and Nigeria and others.” OPEC is actually producing more than 29 million bpd including output from Iraq, which is not included in the official quota.