Satisfied with oil prices, OPEC to sit tight on output
Monday, 15 March 2010
LONDON, March 14 (AFP): OPEC is widely expected to maintain its official oil production quota when it meets this week, with the cartel satisfied with the current level of crude prices, analysts said.
The Organization of Petroleum Exporting Countries, whose member countries together pump about 40 per cent of the world's crude oil, will likely keep its official quota at 24.84 million barrels a day when it meets on Wednesday.
"At the next OPEC meeting, changes in policy will not be necessary," with prices expected to remain at a "reasonable level" of between 70 and 80 dollars, the cartel's president, Ecuadoran Oil Minister Germanico Pinto, said Thursday.
Ahead of the meeting in Vienna-home to OPEC headquarters - the International Energy Agency said emerging markets were driving growth of world oil demand this year, with a big boost from China.
However the IEA also warned that demand for oil, a strong indicator of economic activity, would not recover in advanced economies overall in 2010.
An increase in demand as nations recover from deep recession is being offset by high levels of energy stockpiles, which in turn is preventing prices from pushing far beyond 80 dollars, according to analysts.
The Organization of Petroleum Exporting Countries, whose member countries together pump about 40 per cent of the world's crude oil, will likely keep its official quota at 24.84 million barrels a day when it meets on Wednesday.
"At the next OPEC meeting, changes in policy will not be necessary," with prices expected to remain at a "reasonable level" of between 70 and 80 dollars, the cartel's president, Ecuadoran Oil Minister Germanico Pinto, said Thursday.
Ahead of the meeting in Vienna-home to OPEC headquarters - the International Energy Agency said emerging markets were driving growth of world oil demand this year, with a big boost from China.
However the IEA also warned that demand for oil, a strong indicator of economic activity, would not recover in advanced economies overall in 2010.
An increase in demand as nations recover from deep recession is being offset by high levels of energy stockpiles, which in turn is preventing prices from pushing far beyond 80 dollars, according to analysts.