Iran eases oil supply fears

EHRAN (Reuters) - OPEC heavyweight Iran said on Saturday that it would not disrupt its oil exports as a weapon in its nuclear dispute with the West.

Fears that Tehran, the world's fourth biggest oil exporter, could cut back its crude oil exports or disrupt energy shipments from the Gulf have helped drive oil prices to record highs above $75 a barrel in recent days.

Tension between Iran and the West escalated sharply this month after Tehran said it had produced its first batch of enriched uranium and was forging ahead with plans for industrial-scale output, despite U.N. demands that it halt all enrichment work.

Western nations, who are threatening to press for U.N. sanctions, accuse Iran of seeking to develop nuclear weapons and insist Iran stops enrichment, which has military and civilian uses. Iran says it only wants to produce electricity.

Some Iranian officials have in the past suggested Tehran may use oil as a weapon in the dispute.

But Oil Minister Kazem Vaziri said on Saturday Iran's oil supplies would not be disrupted.

"We strongly believe there is no reason for sanctions but in any case we will not cut our oil exports," the minister told Reuters on the sidelines of an energy forum in Doha.

The United Nations Security Council may consider sanctions against Tehran after studying a report due on April 28 from the International Atomic Agency (IAEA) on whether Iran is meeting its demands for a halt to uranium enrichment.

"During the eight year war imposed on us by Iraq we never stopped exporting," the minister said in reference to the 1980-1988 Iran-Iraq conflict.

He also quashed speculation that Iran could redirect exports to customers that were sympathetic to its cause. Iran ships most of its crude to the Far East while the majority of supplies to Europe goes to France, Italy, Spain, Greece and Turkey.

"We will continue to meet our obligations to all of our customers," Vaziri said. Continued ...

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