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OPEC sticks to oil output quota
AFP
VIENNA
Petroleumworld.com 03 15 07
OPEC decided here on Thursday to stick by its daily output target of 25.8 million barrels of oil, as expected.
The Organization of Petroleum Exporting Countries decided to leave its official quota unchanged following decisions to cut production at its two previous meetings in October and December.
"The quota is the same," Qatari Energy Minister Abdullah bin Hamad al-Attiyah told reporters.
Elsewhere, OPEC decided against handing a first quota to Angola, which joined the organization on January 1.
In its written statement the 12-member cartel decided against an explicit announcement regarding its output decision, focusing instead on volatility and leaving ministers to break the news on production policy.
"Although all indicators clearly show that the market remains well-supplied with crude oil ... overall oil market volatility is likely to continue," OPEC said in an official written statement.
"In light of this volatility, the conference decided to continue closely monitoring market developments to ascertain that oil market stability is achieved and that global economic growth is sustained."
OPEC had indicated ahead of its output decision that the quota would remain untouched as the cartel was satisfied with the price and supply-demand balance for oil.
There had been suggestions by some ministers that OPEC would decide to hold an extraordinary meeting in June owing to the unsettled situation on global financial markets.
But the cartel said its next meeting would be an ordinary one, in Vienna on September 11. Following that, it will convene in Abu Dhabi for an extraordinary meeting on December 5.
On Thursday ahead of the production announcement, crude futures easily topped OPEC's 60-dollar target level in London trade. They showed little reaction following the output announcement.
Last December, OPEC decided to slash its output by 500,000 barrels per day from February 1 this year, following a reduction of 1.2 million bpd in November, in a bid to boost oil prices.According to oil industry experts, OPEC is currently producing about 700,000 barrels above its official daily target of 25.8 million barrels.
Iraq is not included in the quota system as its output is disrupted by violence. With Angola missing too, only 10 of OPEC's 12 member countries are included in the quota system.
The cartel's move to cut production towards the end of last year came after crude prices had tumbled from record highs above 78 dollars in mid-2006 to about 60 dollars.
They went on to fall below 50 dollars in New York in mid-January, the lowest point for 19 months, owing to strengthening energy stockpiles in the United States, but have since rebounded as supplies drop once more.
AFP 15 1446 GMT 03 07
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