OPEC says it only wants to keep oil demand-supply balance

March 6th, 2008 - 5:25 pm ICT by admin  


Vienna, March 6 (IANS) The Organization of the Petroleum Exporting Countries (OPEC) has decided to maintain production targets during the second quarter of the current year, WAM news agency reported Thursday. The OPEC’s decision came at the group’s 148th ordinary ministerial conference here Wednesday amid fears of a declining global demand on OPEC’s crude down to 28.5 millions barrel per day (bpd) after winter.

Those fears are also sparked by signs of a recessing US economy.

The OPEC’s current crude output stands at 32 millions bpd.

The group, which favours non-interference and refrains from intervening to hold the price line, says it is only interested in keeping the demand and supply well-balanced in the global market.

Oil prices have increased by 30 percent since September 2007. World oil prices surged Wednesday, rising by a remarkable $5 a barrel to a new record of over $104.

Chakib Khelil, OPEC’s rotating president and Algerian energy minister, said, “There is sufficient supply. There’s plenty of oil there,” adding that the 13-nation petroleum cartel would be vigilant about the uncertainty and volatility in the international oil market and would “take action at any time” when necessary before the next ministerial meeting in September.

Khelil said the current oil prices were mainly influenced by the devaluation of the dollar and speculation in the market as well as the geopolitical crisis.

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