OPEC to discuss quota violations
OPEC to discuss quota violations
ABU DHABI (AFP): OPEC oil ministers will discuss quota violations by some member states when they hold their semi-annual conference in Vienna next month, OPEC president Rakad ibn Salim ibn Rakad said here yesterday.
Rakad, who is also acting oil minister of the United Arab Emirates acting oil minister, admitted that some members of the 11-nation Organization of Petroleum Exporting Countries (OPEC) were exceeding their production shares.
"There are quota violations inside OPEC but they are limited. The main issues at the conference are how to tackle such violations and maintain the current good situation in the oil market," he said.
Rakad declined to name quota busters, but Venezuela and Nigeria are believed to be responsible for most of the excess output in the OPEC.
Independent estimates have shown such violations boosted OPEC's actual production by nearly one million barrels per day (bpd) above the official ceiling of 25.033 million bpd.
OPEC's monitoring committee, which oversees actual supplies by members, discussed the market situation two weeks ago and is due to meet again ahead of the full OPEC conference to prepare a report on individual productions.
Rakad said he did not know whether OPEC would roll over its ceiling. "That is up to the meeting. We are one group and I cannot decide now."
"We will exchange views and listen to various opinions. We will reach solutions in favor of all members. I am optimistic," said the UAE oil official.
He repeated OPEC's assertions that the return of embargo-hit Iraq to the market after an absence of more than six years would not affect oil prices, which have climbed to above OPEC's target of US$21 a barrel.
Rakad also warned yesterday that there may be a long-term shortage in oil supplies if industrialized nations press ahead with a drive to increase energy taxes.
"The uncertainty concerning (oil) prices and taxation and environmental policies followed by the industrial states will make producing countries hesitate before investing in capacity development, which could cause a supply problem in the future," he said at a Middle East gas conference here.
The OPEC is opposed to a European Union drive to hike taxes on energy to reduce consumption and so promote environmental policies.