The 11-member Organization of Petroleum Exporting Countries (OPEC) will hold an emergency meeting on Sunday, January 12, at its Vienna headquarters, to finalize the volume of the cartel’s imminent production increase.
The producers are seeking to coordinate a substantial output boost in a bid to offset supply shortages caused by a pumping strike in OPEC’s third largest member Venezuela and augmented by fears of a looming strike on another OPEC member, Iraq. The ministers hope to bring prices back down into OPEC’s target range of $22-28 per barrel, in support of world economic growth.
Talk of the move, promoted by OPEC linchpin Saudi Arabia, has already brought about a drop in oil prices. On Tuesday, US crude pulled back to $32.72 from a two-year peak of $33.65 a barrel recorded in December-end.
The Saudi kingdom is pushing the cartel to raise output by nine percent, equivalent to an additional 1.5-2.0 million barrels per day (bpd) on top of OPEC’s current 23 million bpd. Other cartel members believe an increase in the range of four to seven percent—1.0-1.5 million bpd—is more realistic. The 42-year-old group produces over two thirds of world oil exports. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
