Any step to increase crude oil supplies necessitated immediate revival of oil market fundamentals, even if prices go to $100 a barrel, says OPEC.
If it goes to $100 due to speculation, OPEC will not move," OPEC Secretary General Abdullah al-Badri told reporters in Quito, Ecuador ahead of a meeting of oil ministers on Saturday. "OPEC will not act unless something is wrong with the fundamentals."
Those comments may worry consumer nations that want the Organization of the Petroleum Exporting Countries to keep a lid on crude prices to prevent inflated fuel costs hindering economic recovery.
Inventories remain too high for OPEC's liking at nearly 60 days of demand in the industrialized nations of the OECD, some 6 days above levels ministers often cite as comfortable.
That has not stopped oil prices rising. U.S. crude broke above $90 a barrel earlier this week for the first time in two years as traders bet that a recovery in economic growth led by emerging economies would spur increased fuel demand. Crude settled at $88.37 on Thursday.
"OPEC is focused on inventory levels rather than a specific price point," said David Greely, head of energy research at Goldman Sachs in New York.
"When inventories fall back to more normal levels, then that's when they'll bring the oil back - it's not a question of the price being at $90, $100 or even $110 for the group. Inventories are key."
The 12-member OPEC is widely expected to leave supply targets unchanged on Saturday.
"At this time we don't want to disturb the market," said Badri. "The market is in a real comfortable position."
For two years OPEC aimed to keep oil in a $70-$80 range that it said was fair for both producer and consumer nations and supportive for world economic growth.
But as prices rose it appeared to change its mind in early November when Saudi Oil Minister Ali al-Naimi, the group's most influential voice, said that consumers could cope with a $70-$90 range.
That has left oil markets wondering exactly what conditions OPEC might require to open the taps.
"I find it a little curious that he would say that," said Jan Stuart, oil analyst at Macquarie, referring to Secretary General Badri's comments.
If it goes to $100 due to speculation, OPEC will not move," OPEC Secretary General Abdullah al-Badri told reporters in Quito, Ecuador ahead of a meeting of oil ministers on Saturday. "OPEC will not act unless something is wrong with the fundamentals."
Those comments may worry consumer nations that want the Organization of the Petroleum Exporting Countries to keep a lid on crude prices to prevent inflated fuel costs hindering economic recovery.
Inventories remain too high for OPEC's liking at nearly 60 days of demand in the industrialized nations of the OECD, some 6 days above levels ministers often cite as comfortable.
That has not stopped oil prices rising. U.S. crude broke above $90 a barrel earlier this week for the first time in two years as traders bet that a recovery in economic growth led by emerging economies would spur increased fuel demand. Crude settled at $88.37 on Thursday.
"OPEC is focused on inventory levels rather than a specific price point," said David Greely, head of energy research at Goldman Sachs in New York.
"When inventories fall back to more normal levels, then that's when they'll bring the oil back - it's not a question of the price being at $90, $100 or even $110 for the group. Inventories are key."
The 12-member OPEC is widely expected to leave supply targets unchanged on Saturday.
"At this time we don't want to disturb the market," said Badri. "The market is in a real comfortable position."
For two years OPEC aimed to keep oil in a $70-$80 range that it said was fair for both producer and consumer nations and supportive for world economic growth.
But as prices rose it appeared to change its mind in early November when Saudi Oil Minister Ali al-Naimi, the group's most influential voice, said that consumers could cope with a $70-$90 range.
That has left oil markets wondering exactly what conditions OPEC might require to open the taps.
"I find it a little curious that he would say that," said Jan Stuart, oil analyst at Macquarie, referring to Secretary General Badri's comments.
