Iran says a rise in oil production by OPEC as requested by the United States will not affect record prices in a market already saturated with oil.

Iranian Oil Minister Gholam Hossein Nozari told reporters Saturday in Tehran that increasing production will only increase oil inventories.

On Friday, Saudi Arabia rejected a request by U.S. President George Bush for Riyadh to raise oil production in hopes of controlling soaring gas prices.

Iran is OPEC's second largest oil producer after Saudi Arabia.

Oil prices reached a record high of nearly $128 per barrel Friday.

Some information for this report was provided by AFP and Reuters.