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Europe: OPEC keeps oil output targets, to meet again December 11

Europe: OPEC keeps oil output targets, to meet again December 11

Write: Keren [2011-05-20]
p>OPEC agreed Thursday as expected to maintain its current 24,845 million b/d crude production target and to meet next in Quito, Ecuador, on December 11, ministers said.


"The message is there is enough oil in the market," Venezuela's Rafael Ramirez told reporters the group ended its talks in the Austrian capital Vienna.


"We think what we are producing is balancing the market," Libya's head of delegation, Shokri Ghanem, said.


But Ghanem, who heads Libya's National Oil Corporation, was less sanguine about the current oil price levels because of falls in the value of the US dollar, in which most crude sales are denominated.


OPEC has informally embraced a crude price range of $70-$70/barrel, although prices have been above that range for more than a week.


Ghanem was asked whether he was happy with oil prices between $75 and $85/b. "It is acceptable. But, as a matter of fact, the trend is going against OPEC because the dollar is getting eroded...we are losing on our real income," he said.


"Libya in particular would like to see a higher price, even up to $100/b," he said.


OPEC's Ecuadorean president, Wilson Pastor-Morris, warned earlier in an opening address to the conference that, given the uncertain outlook for the global economy, high oil price volatility could return.


"...the potential for a return to high price volatility remains," Pastor said, noting that the OPEC basket had fallen by 20% over a three-week period in May.


"Such a turn of events could easily happen again, if we are not careful," he said.


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