Mr. Namdar-Zanganeh arrived Wednesday from Tehran with a message from the Iranian President Mohammad Khatami to the Saudi Crown Prince Abdullah bin Abdul Aziz on the crude market situation and ways to stabilise markets.

On his arrival at Riyadh, Mr. Namdar-Zanganeh said that Iran and Saudi Arabia share common stances on the need for stability in the oil market.

"Global economic recession and falling oil prices prompt members of the OPEC (Organisation of Petroleum Exporting Countries) to have "constant consultations", the Iranian Oil Minister said.

Asked about OPEC's measures to prevent falling demand and oil price, Mr. Namdar-Zanganeh said though decline in demand is linked to the growth in global economy but there should be co-operation among all producers to stabilise oil price.

"Oil producers and consumers should have close views to pass the ongoing critical conditions and reach a stable status that would favour both sides", he suggested, inviting non-OPEC producers to co-operate more closely with OPEC "under present "sensitive conditions".

"In case of constant contacts with non-OPEC countries, OPEC can ensure a suitable price", Mr. Namdar-Zanganeh told reporters, adding that though OPEC members were in "good cohesion", yet the prevailing military situation in the world is "unusual" for the 11 members Organisation.

He said lack of long-term strategy in OPEC is evident because the organization had been established for short and mid-term planning and cannot devise long-term policy for its members.

Receiving the Iranian Oil Minister, Prince Abdullah, considered as the Saudi’s strongman, expressed satisfaction over the expanding Iran-Saudi Arabia's cooperation, especially in the field of oil and stressed the need for continuation of cooperation between the Organisation’s members and their struggle to maintain a stable oil market, the Iranian official news agency IRNA reported from the Saudi Capital.

At the meeting, attended also by the Kingdom’s Foreign Affairs Minister Sa’ud al Faysal, Mr. Namdar-Zanganeh stressed on the need for co-ordinated effort of OPEC and non-OPEC producers.

His trip came ahead of a visit to Riyadh on Saturday by Venezuelan President Hugo Chavez, who had also expressed his preoccupation over the fall in oil prices.

On Tuesday, Khatami and Chavez had discussed the market situation by telephone. Chavez is expected in Tehran next week, coming from Saudi Arabia.

In his message, the Iranian cleric president called for OPEC producers to coordinate their policies in order to "avoid a drop in the price per barrel and to guarantee the interests of producing and consuming countries."

Chavez is lobbying other members of the Organisation of Petroleum Exporting Countries (OPEC) to keep up oil prices, possibly through a cut in output.

Crude prices have slumped in the wake of the September 11 terror attacks on New York and Washington, as markets react to slowing demand from increasingly recession-hit economies around the world.

OPEC has fixed its quota output at 23.2 million bpd. OPEC's meeting is scheduled on November 14, but observers said that the exporting countries are working on a consensus to fix the level of output cut before the meeting.

The price of a barrel of Brent crude oil delivery in November on the London oil market was US$ 21.65 and Dubai crude at London oil market stood at between US$ 20.15 and 20.25.

"It would be useless for OPEC to reduce production if non-OPEC countries keep producing (more) oil" President Chavez told reporters after meeting diplomats at the Organisation’s Head Quarters in the Austrian capital, Vienna.

Chavez urged OPEC members to comply with their quotas and said a price war would harm all oil exporters, "OPEC and non-OPEC alike".