OPEC To Leave Oil Output Targets Unchanged

12-23-2009 | Source: World Oil

OPEC will leave output targets unchanged when it meets this week in Luanda, ministers said, as robust oil prices offset concerns in the group about excess supplies.

Saudi Arabian Oil Minister Ali al-Naimi has yet to arrive in Angola ahead of tomorrow's meeting but he has already made clear he believes the price is right and he sees no need for OPEC to adjust supply.

"There will be no change in OPEC supply of crude oil. OPEC will not reduce supply and it will not increase supply," Algerian Energy and Mines Minister Chakib Khelil told reporters in Algiers before leaving for Luanda.

"I don't think so," Iraqi Oil Minister Hussain al-Shahristani said on his arrival in Luanda when asked whether OPEC needed to adjust its supply ceiling.

OPEC delegates speaking on condition of anonymity reinforced the impression tomorrow's meeting should be swift and without major debate.

Oil fell toward $30 a barrel in December last year, spurring the producer group to announce a record cut of 4.2 million bpd from production in September 2008.

Officially that reduction, representing around 5% of oil demand, is still in place, although OPEC's compliance with the target has fallen from historic highs of around 80% to roughly 60% now as the oil price has rallied.