OPEC calls off July Vienna meeting

OPEC calls off July Vienna meeting

The Jakarta Post, Jakarta

The Organization of Petroleum Exporting Countries (OPEC) has
canceled a scheduled ministerial meeting in Vienna on July 21,
but it is sticking to its decision to raise its output ceiling by
500,000 barrels per day (bpd) on August 1.

The oil cartel said, however, it would continue to monitor
market developments.

"The organization has decided that there is ... no need for
the conference to meet on July 21, 2004, as originally planned,"
OPEC said in a statement issued late on Thursday.

"OPEC member countries have already increased supply to the
market in order to maintain adequate supply and support
continued, robust, global economic growth," it added.

OPEC is now scheduled to have its next meeting in Vienna on
Sept. 15.

OPEC said it would continue to closely monitor market
developments.

"OPEC remains firm in its determination to meet whenever the
need arises, in order to take decisions that might be required to
maintain market stability and keep prices at acceptable levels to
both producers and consumers," it said.

At its Beirut meeting in June, OPEC agreed to increase its
output by 2.5 million bpd in two phases in a bid to cool surging
crude prices that perched stubbornly at record levels.

Strong global demand spurred by energy-hungry China and fears
over lack of supply due to deteriorating security in the Middle
East contributed to strong crude prices, analysts said.

A rise of 2 million bpd in output began on July 1 while a
500,000 bpd rise is slated for Aug. 1. The increases bring total
production of the 10 OPEC members, excluding Iraq, to a total of
26 million bpd.