MercoPress. South Atlantic News Agency

OPEC promises more oil supply in May

Oil Petroleum Exporting Countries, OPEC, will possibly postpone the formal increase of production quotas until June' meeting but will expand supply in May anticipated the cartel's president.

"There will be production increases in May because demand in the third quarter will require us to expand production", indicated Ahmad al-Fahd al-Sabah from Kuwait.

"To ensure a sufficient flow of oil to markets there will be an automatic increase by member countries without a formal resolution from OPEC".

OPEC ministers agreed last month to increase quota production by half a million bpd and left open the possibility of a second half a million barrels if prices continued to rise above the 55 US dollars threshold.

In the last two weeks Texas light crude has dropped from its record highs and stands above 50/51 US dollars the barrel.

Mr. Ahmad said prices were almost at their "balanced equilibrium" without the need to again increase formal quotas.

"Prices are falling. There's no reason to increase our 500,000 bpd at the moment. So until we have our meeting in June there's nothing OPEC can say".

Persian Gulf oil producers are anxious to increase supply and stimulate inventories in the coming months creating reserves for when demand grows further in the year.

"I think prices have reached a fair level. If there's an increase in production it will be in May because the market will need it for when the demand jumps in the third quarter", concluded Mr. Ahmad.