OPEC seems to takes the stance to maintain the OPEC oil basket inon $25 average. Only if prices go below $25, before March 16, OPEC will cut production, the Middle East Economic Survey (MEES) said on his Monday report.
MEES said the organization had two main aims: to keep the OPEC basket price within the preferred $22-28 price band and to keep the market adequately supplied with crude.
"We don't want to see the price to go down. Yes, it may fluctuate, but we want to see it within this target range of $22-28," a senior OPEC source told MEES.
"If we see any sign that the price is going to go down, to slip further and further, we will intervene immediately," he added.
Asked if OPEC would take proactive action to defend prices, the source said: "Yes. We are willing to do that--to act immediately if there is a need to do so."
MEES said it understands that the OPEC basket price should be maintained at $25 is central to OPEC policy making at present. It said that this price target is supported by non-OPEC exporters Mexico and Norway.
"The organization is convinced that major consumer countries have also accepted $25 as a fair price, because there have been no significant objections to this price level of late," MEES said.
© 2001 Mena Report (www.menareport.com)
