Kuwait: OPEC Will 'Most Likely' Maintain Output
Kuwait's Oil Minister Hani Hussein said on Wednesday that OPEC will "most likely" maintain its production at 30 million barrels per day, but admitted differences among member countries.
"There are different directions before the OPEC ministerial meeting," on Thursday, the official KUNA news agency quoted Hussein as saying in Vienna where the meeting will take place.
"(But) most likely the ministers will maintain the (current) production ceiling at 30 million barrels per day without change," Hussein said, as some OPEC members called for an increase and others demanded a reduction.
OPEC kingpin Saudi Arabia has called for existing output levels to be raised while some other members, including Venezuela, called for production to be slashed, accusing some countries in the Gulf of over-production.
"It will have to be reduced... We estimate that we have an over-production of 3.0 million barrels a day" above the ceiling of 30 mbpd that was decided in December, Venezuelan oil minister Rafael Ramirez said.
Hussein said that geopolitical, psychological, climatic and the levels of crude stockpiles are affecting the price of oil.
Oil was lower in Asian trade Wednesday ahead of the crucial OPEC meeting.
The oil markets were also under pressure from growing worries over the economic crisis in Europe despite a massive bailout of up to 100 billion euros ($125 billion) to rescue Spain's ailing banking sector.
New York's main contract, light sweet crude for delivery in July, eased 30 cents to $83.02 a barrel and Brent North Sea crude for July delivery fell 12 cents to $97.02 a barrel.
The 12-member cartel, which pumps about one third of the world's crude supplies, left its 2012 world oil demand outlook almost unchanged on Tuesday, citing price volatility and pressure on the global economy.
Source: Agence France Presse
| Copyright © 2012 Naharnet.com. All Rights Reserved. | https://naharnet.com/stories/en/43274 |