The Organization of the Petroleum Exporting Countries (OPEC) met in Osaka, Japan, last week, resolving to maintain production quotas at their current levels for the meantime, in spite of the price per barrel edging above the $22-28 targeted price range.
Rebuffing concerns that higher oil prices could undermine economic recovery in Western developed nations, OPEC ministers said the market seems well supplied. The oil officials refused to commit to raising output prior ahead of the cartel’s upcoming meeting, December 12.
"OPEC and other producers have the flexibility to increase output if circumstances create a pressure to do so. However, lack of supply is not the problem at present," UK Energy Minister Brian Wilson remarked. Commentators believe the upward pressure on prices includes a $3-5 premium, caused by international uncertainty. "Increasing production at the present time is not going to address that factor,” said Wilson.
“If the trend strengthens, there is a clear consensus among both producer and consumer nations to act in order to avoid a sustained period of damaging high prices,” said Wilson, adding that the consensus was a vital safeguard at a time of international uncertainty.
Wilson attended the 8th International Energy Forum which brings together producer and consumer nations aiming to widen the international consensus on the operation of the oil market. During the Forum, also held in Osaka, Wilson met with a number of energy ministers, including those from Kuwait and Saudi Arabia.
Oil prices reached a 19-month high of $30.45 per barrel this week, largely associated with US threats to strike Iraq. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
