Saudi Arabia's oil minister has downplayed the threat of oversupply in oil markets despite Iran looking to ramp up significantly its production in 2014 as sanctions are lifted from the country.
At a bustling meeting of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna on Wednesday, Iranian Oil Minister Bijan Namdar Zangeneh, told CNBC that the country was "technically ready" to start producing 4 million barrels per day (bpd) as soon as sanctions stopped, which would be around the middle of 2014.
He added that other producers would therefore have to moderate their production to maintain capacity and prices but didn't want to name producers that he feels should be looking to curb output. Namdar Zangeneh told Iranian reporters ahead of the OPEC meeting that Iran will produce oil at this level "under any circumstances" -- even if oil prices dropped to $20 a barrel, according to Reuters.
(Read More: Nigeria minister: Working to fight oil theft)
Ministers rolled forward until June an agreement to hold their output near 30 million barrels daily for the 12 member countries, but analysts are focused on reaction from other nations after comments from Iran.
In response to the Iran's proposed production hike, Ali al-Naimi, Saudi Arabia's highly influential oil minister said he was not worried about Iranian oil oversupplying the market but stressed that if prices decreased it would not only be OPEC that would be affected.
"The market will accommodate it," he told CNBC at the meeting. He also rejected suggestions that Iraq had used Iranian sanctions to increase its own production, saying media outlets had made "assumptions".
Iran - the world's fourth biggest oil-producer according to the International Energy Agency (IEA) - and six world powers reached a breakthrough agreement in November to moderate Tehran's nuclear program in exchange for limited sanctions relief.
These sanctions by the U.S. and European Union on Iran's energy sector have prevented western energy companies from dealing with Tehran, slashing exports from 2.5 million bpd to around 1 million bpd.