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Libya's Gaddafi, Iran's Khatami discuss oil

TUNIS: Iran's President Mohammad Khatami discussed oil issues with Libyan leader Muammar Gaddafi by telephone on Sunday, Libyan state radio reported on Monday.

The radio, monitored in Tunis, said they consulted on several issues, "particularly the oil affairs."

Libya and Iran are members of OPEC which meets on Monday to seek to bridge a gap between cartel members on how much extra oil can be sent into world markets without prices crashing.

The head of Libya's OPEC delegation Abdullah al-Badri said on Sunday OPEC should not increase output until September.

Fellow price-hawks Algeria and Iran who with Libya were previously reluctant to ease output curbs, have since softened their stance.

Khatami on Sunday also discussed oil by telephone with Saudi Crown Prince Abdullah and Venezuelan counterpart Hugo Chavez.-Reuters