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Montevideo, May 22nd 2024 - 18:36 UTC



OPEC contrary to increasing crude output in September

Wednesday, August 8th 2007 - 21:00 UTC
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'I don't see any increase in production needed,' said the  OPEC delegate. 'I don't see any increase in production needed,' said the OPEC delegate.

Despite calls from consumers for more crude to lower prices from near record highs, the Organization of Petroleum Exporting Countries, OPEC, does not believe it's necessary to raise output when it meets next September 11.

The comments from reliable sources from the organization are the latest indication that Opec, source of more than a third of the world's oil, is holding firm in the face of calls from the US and the International Energy Agency for higher oil output. "As the market stands today, I don't see any increase in production needed," said the OPEC delegate. "We believe the market is well supplied." The delegate said he expected prices to ease further from the record high of 78.77 US dollars a barrel reached on August 1 as factors unrelated to supply and demand, such as speculation and "consumer anxieties", had pushed prices up. "We see the price easing in coming days. I don't see any reason prices should be at this level." US crude was trading at 72.13 a barrel, down 29 cents in Wednesday afternoon. By consumer anxieties, the delegate was referring to projections of rising world oil demand from the IEA, advisor to 26 industrialized countries, and other forecasters which are all higher than Opec's estimates. The Paris-based IEA on July 13 predicted world oil demand will grow by 2.2mn barrels per day next year, much more than Opec's forecast for expansion of 1.34mn bpd. "Consumers have been very anxious in the past few months and that has added some premium to the price," said the delegate. Opec decided last year to lower output by 1.7mn bpd to bolster prices. Outside estimates indicate most members – including top world exporter Saudi Arabia – are keeping a lid on supply. The 10 Opec members bound by output targets, all except Iraq and Angola, pumped 26.75mn bpd in July, up 150,000 bpd from June.

Categories: Energy & Oil, International.

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