MercoPress. South Atlantic News Agency

OPEC uneasy with barrel of oil above 60 US dollars

High oil prices are causing a contraction in world demand according to the Organization of Petroleum Exporting Countries, (OPEC), latest monthly report issued Monday in Vienna forecasting a 2005 demand increase of 1,4% instead of 1,7% as originally estimated.

OPEC estimates daily oil demand to average 83,26 million barrels per day, 230.000 barrels less than in its September report.

For next year, OPEC forecasts supply to increase 1,8% reaching 84,73 million bpd, which is 280.000 barrels less than originally estimated.

OPEC president Ahmad al-Fahd al-Sabah, who is also Kuwait's Petroleum minister, reiterated that the cartel has an additional production capacity of 2 million bpd.

"We can't verify the number unless there's world demand, but you can be sure that we will be able to supply an additional two million bpd".

However he admitted OPEC is uncomfortable with crude prices at 69 US dollars per barrel adding that the 40/60 US dollars range is more appropriate since "it stimulates new production without stifling economic growth, making both producers and consumers satisfied".

"Crude prices over 60 US dollars per barrel don't seem to be good for some parts of the world economy. It's a level with which we are not pleased", concluded OPEC's president.