Optimism masks Iran risk to oil rally from 12-year low

Hong Kong

OIL'S recovery from a 12-year low may be too good to last as Iranian output rebounds faster than expected.

Opec last week stuck to its policy of unfettered production, deciding against a new output ceiling as the price rally supported optimism among its members that the oil market is improving. Bijan Namdar Zanganeh, Iran's Oil Minister, said fellow Opec members didn't give him any negative signals when they met on Thursday in Vienna about his nation's plan to further raise production.