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.