"I think that at the moment the prices are good. Many people are happy about the current prices," Zanganeh told reporters.

"If at the end of this month we feel there is no need for extra oil, we can postpone the decision on the extra 500,000 barrels per day. It depends on the market situation and the prices," he said.

"We can make a new decision about if we want to suspend the August increase, otherwise the 500,000 bpd increase does not need to be approved again," he added.

"We have already said we want to have a balanced market situation."

Faced with record highs on world markets, Opec had announced June 3 it would raise production quotas by two million bpd on July 1, and by another 500,000 bpd on August 1.

But signs of wavering on the promise from key cartel producers, including market kingpin Saudi Arabia, have kept prices buoyant.

Zanganeh's remarks followed similar comments on Wednesday from Saudi Oil Minister Ali al-Nuaimi, who said current prices were "fair" and that there was "no reason to take a measure to reduce or increase production" when Opec meets on July 21.

Iran is the Organisation of Petroleum Exporting Countries' number two exporter after Saudi Arabia.

The minister was also asked if Iran would be asking Opec for an increase in its daily production quota.

"No, we have not made such a request," he said. "But there is general discussion going on in Opec to work out a new quota system. These discussions will take a long time. It needs a consensus among all members."

Iran's current quota is 3.744 million bpd, and its production and capacity are around 3.9 million bpd.