Falling oil prices delay output hikes

Falling oil prices delay output hikes

KUWAIT CITY: The Organization of Petroleum Exporting Countries (OPEC) would likely postpone increasing its production ceiling by 500,000 barrels per day in May if prices continue to slide, OPEC spokesman Abdul Rahman al-Khreiji said on Saturday.

OPEC president Sheikh Ahmed Fahed al-Sabah, who is Kuwait's energy minister, has repeatedly said the cartel would likely increase production in May by 500,000 b/d. The increase would boost the official ceiling to 28 million b/d in order to prepare for a surge in demand during the third and fourth quarters of 2005.

World oil prices on Friday fell for the seventh straight day, ending the trading week near 50 dollars per barrel.

Al-Khreiji made his prediction in an interview from OPEC headquarters in Vienna with Kuwait News Agency (KUNA).

At their March 16 meeting in Iran, oil cartel members agreed to increase the production ceiling by 500,000 b/d to 27.5-mil b/d to cool down prices. -- DPA