OPEC will decide to hike output by at least 500,000 barrels per day (bpd) at the next ministerial meeting in Vienna on September 10th, the Arabic-language Al-Hayat newspaper reported Monday.
"The cartel will increase its production by at least 500,000 bpd during its Vienna meeting on September 10," the London-based paper said, citing high level OPEC sources.
The sources said they were "astonished" that prices had remained above 30 dollars a barrel, adding "the market situation does not justify such a price level, which is due in part to speculation."
The production hike will be decided under the mechanism adopted by OPEC at its March meet, allowing for a rise of 500,000 bpd if prices remained above 28 dollars a barrel for 20 consecutive working days, the paper said.
Benchmark Brent crude for October delivery closed at London's International Petroleum Exchange (IPE) Friday at 30.42 dollars, marginally lower than a week ago when it stood at 30.72 dollars.
US President Bill Clinton said the same day that high prices would lead to another recession, which would dramatically lower demand in the long term.
Meanwhile, Al-Hayat added that Iran, Iraq and Saudi Arabia had all retained their candidates for secretary-general of the Organization of Petroleum Exporting Countries, a post that has to be voted on unanimously.
"This problem can only be resolved if a new candidate from a country which brings about within OPEC is put forward," the paper said.
Nigerian Rilwanu Lukman was retained in the post last September after none of the three candidates won unanimous approval.
Venezuela will not be proposing anyone despite Baghdad's promise to withdraw its candidate as a way of thanking that country for its president's recent visit to Iraq.
The next elections will be held during the OPEC summit in Caracas in late September - DUBAI (AFP)
© 2000 Al Bawaba (www.albawaba.com)
