Organization of Petroleum Exporting Countries (OPEC) to maintain production levels remain unchanged in the range of 24.84 million barrels per day (bpd) at a meeting Wednesday (08/06/2011) local time in Vienna. The decision was membuay crude oil prices remain high in the global marketplace.
Previously, traders speculated that OPEC will push production to help lower high oil prices. "We regretted not reach a consensus at this time to decrease or increase our production," said OPEC Secretary General Abdullah El-Badri said after the meeting. OPEC, whose 12 member countries, while maintaining the production of 24.84 million bpd quota, established since January 2009.
However, the cartel is actually pumping above that level as compensation to Libya, which are also members of OPEC production declines after the riots in the country since February. A Libyan representative also attended Wednesday's meeting.
Saudi Arabian Oil Minister Ali al-Naimi told a meeting of the worst produced by OPEC member country since split. "We where not able to reach an agreement," said Naimi, who confirmed that the Gulf countries like Saudi Arabia, Kuwait, Qatar and United Arab Emirates has proposed increasing production by 1.5 million bpd. Saudi Arabia is the world's largest oil supplier.
"Failure to approve an increase in production risk making the global oil market in danger of shortage of crude oil during periods of strong seasonal demand in the coming half year," said Nic Brown from Natixis.
OPEC, which produces 40 percent of global oil supply, is expected to maintain the current upper limit of the quota until the next meeting in December.
After the decision of OPEC, the price of Brent crude oil went up 1.62 dollars to 118.40 dollars per barrel in London trading and light sweet crude in New York rose 1.75 dollars to 100.84 dollars per barrel.
It is also common in Asian markets on Thursday. Light sweet crude for July delivery climbed back into the position of 101.23 dollars per barrel and Brent North Sea increased 27 cents to 118.12 dollars.
While the International Energy Agency (IEA) throws disappointment with OPEC's decision and urged producers to pump more in order to avoid high oil prices.
OPEC Secretary General El-Badri told reporters that OPEC has the space capacity of between four - 4.5 million barrels per day. The number is lower than that to 6.0 million - 6.5 million brarel per day before the riots in Libya that erupted in February.
Next OPEC meeting scheduled for mid-December in Vienna to discuss oil market situation. "At the end of that period, we can make a proper decision but this decision (to maintain production quotas) is very unfortunate not welcomed by certain members," said El-Badri.
Some OPEC members worried that the oil market will be tight in the coming months - due to seasonal demand peak in summer in the northern hemisphere - will surely push oil prices higher.
0 comments:
Post a Comment