TEHERAN - IRAN wants higher oil prices and seeks to create balance in the market between supply and demand, Oil Minister Gholamhossein Nozari said in remarks published on Saturday ahead of next week's Opec meeting.

The Organisation of the Petroleum Exporting Countries (Opec) meets in Vienna on Friday after oil prices tumbled to half their July peak of US$147 (S$217) a barrel. Benchmark US crude was last trading around US$72 a barrel.

'Balance should be established between oil demand and supply. In addition to stabilising the oil price, we intend to increase its price,' Mr Nozari said in comments carried by the state broadcaster's website.

Pressure is mounting within Opec to reduce supplies.

Opec President Chakib Khelil, who is also Algeria's energy and mining minister, was quoted as saying on Saturday that Opec would reduce output and any reduction should be significant.

Mr Khelil was quoted as saying Opec producers saw oil prices bottoming at US$70 to US$90 a barrel. He also said 'supplies must be reduced' to ensure balance in the market.

Mr Nozari has said Iran, Opec's second biggest producer after Saudi Arabia, would seek an output cut at the cartel's next meeting. That gathering was brought forward from November.

Mr Nozari said he hoped 'that by cutting a part of extra production (by Opec) we would achieve a stable oil price,' Iran's Fars News Agency reported.

Economists say Iran has become increasingly dependent on high oil prices, some saying it now needs US$70 to US$75 a barrel for its crude to balance its books. Iranian crude tends to trade at a discount to international benchmarks. -- REUTERS