OPEC may extend output ceiling<\/p>\n
ABU DHABI (AFP): OPEC oil ministers meeting in Indonesia this
\nmonth will likely extend the cartel's official production ceiling
\nto support sagging oil prices, the official Emirates news agency
\nsaid yesterday.<\/p>\n
It said the rollover of the 24.52 million barrel per day (bpd)
\nceiling, in force for nearly 13 months, would push up prices by
\nmore than US$2 because of high seasonal demand in the first
\nquarter of 1995.<\/p>\n
"Contacts among members of the Organization of Petroleum
\nExporting Countries as well as market factors have produced
\nindications that the oil ministers will take a decision to extend
\nthe current output ceiling," it said.<\/p>\n
"Their only mission will be whether to fix that ceiling for
\nthe first quarter of 1995 or the first half."<\/p>\n
OPEC's 12 oil ministers will meet in the Indonesian island of
\nBali on Nov. 21 to set fresh production levels and elect a new
\nsecretary general after the three-year term of Subroto of
\nIndonesia expired in June.<\/p>\n
The present ceiling has been in force since September 1993 but
\noil prices have remained far below OPEC's target of US$21. In
\nMarch, they dipped to $13 before they recovered to around $16.<\/p>\n
Nigerian minister of state for petroleum and mineral
\nresources, Alhaji Umaru Baba, said during a Gulf tour this week
\nthat crude prices could rise by $2 a barrel if OPEC extended the
\nceiling and complied with production.<\/p>\n
Independent estimates showed the organization was producing
\naround 300,000-400,000 bpd above its ceiling. But the figure is
\ndwarfed by massive quota violations in the past few years.<\/p>\n
Low oil prices have hurt Gulf states most as they depend
\nheavily on crude exports. Saudi Arabia, the world's top oil
\nproducer and exporter, and other Gulf oil heavyweights were
\nforced to slash spending in the past two years to cut budget
\ndeficits, leading to a slowdown in their economies.<\/p>\n
"The decision to extend the production ceiling will boost oil
\nprices by $2 or more and at the same time it shows that OPEC has
\nentered a new stage of chalking out policies that serve the
\ninterests of all," WAM said.<\/p>\n
"This is a significant step by OPEC towards realizing its
\nobjectives for reaching a price of $21. According to several OPEC
\nministers, the Bali conference is expected to be easy as it will
\nbe a continuation of the organization's new policy."<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/opec-may-extend-output-ceiling-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}