Opec to discuss rise in output
Saturday, 1 December 2007
Javier Blas
Opec countries are considering backing a production increase of at least 500,000 barrels a day at next week's ministerial meeting in Abu Dhabi in an effort to prevent crude oil prices reaching the key $100-a barrel level.
Two industry officials familiar with Opec policy said that some Gulf countries, including Saudi Arabia, were pushing for the production increase.
However, they cautioned an output rise was far from a done deal as other members, including Venezuela, opposed the move.
"They are going for an increase in Abu Dhabi," one of the industry officials said about the moderate Gulf countries, noting that ministers were discussing an increase of about 500,000 b/d.
The second official said that a rise of 700,000 b/d to a maximum of 1.0m b/d was possible.
Abdullah al-Attiyah, Qatar oil minister, last Tuesday opposed such a step. "My personal belief is that for the moment there is no need to increase production," he said.
However, crude oil prices are still trading within the range of $90-$100 that has prevailed for most of the last six weeks.
Saudi Arabia, Opec's most influential member, has yet to disclose its position on a production rise.
A week ago, it sent mixed signals, pointing out that it opposed high oil prices but cautioning that the market was not short of oil.
Mr Naimi last Wednesday reiterated comments made last Tuesday when he said only that the oil cartel would "look at all the information available...supply, demand, inventories".
Mr Naimi also confirmed that the kingdom was now pumping 9m b/d, slightly more than its target under Opec's September agreement to increase its production ceiling by 500,000 b/d.
Industry officials said that worries about lower oil demand triggered by a slowdown of US economic activity were being offset by expected higher winter consumption.
The details of any agreement, including the volume of the rise, are going to be difficult as Opec has to weigh opposing forces on demand, officials said.
Iran, a traditional price hawk, has adopted a pragmatic approach, noting that it is ready to join a production increase "if statistics show need for more oil".
(Under syndication arrangement with FE)
Opec countries are considering backing a production increase of at least 500,000 barrels a day at next week's ministerial meeting in Abu Dhabi in an effort to prevent crude oil prices reaching the key $100-a barrel level.
Two industry officials familiar with Opec policy said that some Gulf countries, including Saudi Arabia, were pushing for the production increase.
However, they cautioned an output rise was far from a done deal as other members, including Venezuela, opposed the move.
"They are going for an increase in Abu Dhabi," one of the industry officials said about the moderate Gulf countries, noting that ministers were discussing an increase of about 500,000 b/d.
The second official said that a rise of 700,000 b/d to a maximum of 1.0m b/d was possible.
Abdullah al-Attiyah, Qatar oil minister, last Tuesday opposed such a step. "My personal belief is that for the moment there is no need to increase production," he said.
However, crude oil prices are still trading within the range of $90-$100 that has prevailed for most of the last six weeks.
Saudi Arabia, Opec's most influential member, has yet to disclose its position on a production rise.
A week ago, it sent mixed signals, pointing out that it opposed high oil prices but cautioning that the market was not short of oil.
Mr Naimi last Wednesday reiterated comments made last Tuesday when he said only that the oil cartel would "look at all the information available...supply, demand, inventories".
Mr Naimi also confirmed that the kingdom was now pumping 9m b/d, slightly more than its target under Opec's September agreement to increase its production ceiling by 500,000 b/d.
Industry officials said that worries about lower oil demand triggered by a slowdown of US economic activity were being offset by expected higher winter consumption.
The details of any agreement, including the volume of the rise, are going to be difficult as Opec has to weigh opposing forces on demand, officials said.
Iran, a traditional price hawk, has adopted a pragmatic approach, noting that it is ready to join a production increase "if statistics show need for more oil".
(Under syndication arrangement with FE)