OPEC to maintain production levels
The Organisation of Petroleum Exporting Countries (OPEC) yesterday at its 162nd Meeting held in Vienna, Austria, resolved to maintain the current production level of 30 million barrels of crude per day (b/d) after reviewing the oil market outlook for 2013.
The conference noted that the price volatility witnessed throughout 2012 was mostly a reflection of increased levels of speculation in the commodities markets, exacerbated by geopolitical tensions and, latterly, exceptional weather conditions.
It noted that "Indeed, the biggest challenge facing global oil markets in 2013 is uncertainty surrounding the global economy, with the fragility of the Euro-zone remaining a major concern."
The Conference further noted that, although world oil demand is forecast to increase slightly during the year 2013, it will be offset by the projected increase in non-OPEC supply even as it projected demand for OPEC crude in 2013 to be 29.7 million b/d.
"Given the demand uncertainties, the Conference decided to maintain the current production level of 30.0 mb/d. The Conference also agreed that Member Countries would, if necessary, take steps to ensure market balance and reasonable price levels for producers and consumers," a statement on the organisations site stated yesterday.