Oil industry could ride out a further price slump to $25 a barrel since there is no sign within OPEC toward action to support oil prices. It shows that despite lobbying by Iran and Venezuela, there is little chance of collective action by the 12-member OPEC to prop up prices - entrenching the reluctance of individual members to curb their own supplies according to the comments.

Early on Wednesday, Iran's official Press TV said Iran would stop exporting oil to six E.U. countries ?? France, the Netherlands, Greece, Italy, Spain and Portugal. Iran's Oil Ministry subsequently denied the Press TV report. An Oil Ministry source said that the exports to Europe have not been stopped yet but that Iran has given an ultimatum to those countries to continue their long-term contracts.

Iran is the world's fourth-largest oil producer, with an output of about 4 million barrels of oil a day. It relies on oil exports for about 80 percent of its public revenues. Iran has adopted an aggressive military posture in recent months in response to increasing threats from the U.S. and Israel that they may take military action to stop Iran's nuclear program.