Business | Oil & Gas
Opec likely to keep output quotas unchanged
UAE Minister of Energy Mohammad Bin Dha'en Al Hamili said yesterday that the Organisation of Petroleum Exporting Countries (Opec) would keep production quotas unchanged at its regular meeting tomorrow in Vienna.
- WAM
- Published: 00:00 September 10, 2006
Abu Dhabi: UAE Minister of Energy Mohammad Bin Dha'en Al Hamili said yesterday that the Organisation of Petroleum Exporting Countries (Opec) would keep production quotas unchanged at its regular meeting tomorrow in Vienna.
Speaking to WAM, Al Hamili said: "Market fundamentals of supply and demand clearly point to an overproduction in crude oil quantities as compared to actual global demand. This has led to large surplus in stocks, the biggest in five years. I therefore see no need to change the current production quotas. On the contrary, the decision may be to maintain the current output ceiling, especially that prices look good, nearing $70 per barrel for US crude and $65 for the Opec basket. This level is quite acceptable to us".
Al Hamili pointed out that global economy was growing steadily and is expected to achieve a 4.7 per cent growth by the end of the year. "This healthy growth shows that the impact of soaring oil prices on global economy was minimal," he said.
Asked about what he thought were suitable prices, Al Hamili said: "There is no such thing as suitable prices. What is suitable is what is acceptable to consumers and producers. So I think current prices are reasonable as if you compare them to the levels of the 1970s and early 1980s, you will realise that current prices are still below those levels."
He stressed that Opec has the capacity to pump an additional two million bpd to meet growing global demand in future.
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