7.04 PM Thursday, 29 February 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 05:26 06:39 12:34 15:52 18:24 19:37
29 February 2024

Opec keeps oil output steady

By Agencies




Opec ministers on Wednesday kept output steady and said record high prices had been driven by a series of factors that were beyond their control.
US crude hit a record of $103.95 a barrel on Monday and was trading above $100 on Wednesday.
Washington has said even a token supply increase from the Organization of the Petroleum Exporting Countries would help to tame prices.
But Opec ministers have repeatedly said the market has been driven upwards by factors such as a weak dollar, speculation and political strife, and not by a lack of oil.
After less than two hours of talks, Opec delegates told Reuters the group had reached agreement to keep supplies steady.
Nigerian Minister of State for Oil Odein Ajumogobia said earlier he believed output should be kept steady, although he said oil above $100 was uncomfortable and above $80 a barrel was high.
"The Opec official position has been anything above $80 is on the high side," he told reporters.
Wednesday's no-change decision could still allow for quiet shifts in Opec production.
Top exporter Saudi Arabia has consistently pledged to keep the market well-supplied with oil.
Saudi Arabian Oil Minister Ali al-Naimi said the kingdom had been pumping 9.2 million barrels per day (bpd) "day in, day out", which is roughly 300,000 bpd above its formal OPEC output target.
Piling the pressure on Opec, Washington said on Tuesday a modest output increase of 300,000 bpd to 500,000 bpd could calm prices and help to limit any economic damage.
"I think it's a mistake to have your biggest customer's economy to slow down ... as a result of high energy prices," US President George W. Bush said on Tuesday.
Given they do not believe oil prices have been driven higher by a lack of crude, Opec ministers have been sceptical that an output increase would have any impact on the market.
Opec last decided to raise its production in September 2007 and that decision did not halt the oil price rally, Opec President Chakib Khelil has noted.
Together with other ministers, he has said crude stock levels could build during the second quarter when consumption typically tapers off after the end of winter.
He has also said a seasonal decline in demand could be exaggerated by the impact of economic slowdown.
The exporter group's 13 members, who pump more than a third of the world's oil, could have an opportunity to reassess the market at producer-consumer talks in Rome on April 20-22.  (Reuters)