OPEC rolls over oil output policy, raises ceiling -sources

LONDON: The Organization of the Petroleum Exporting Countries (OPEC) kept its crude oil supply policy unchanged and agreed a production ceiling at 31.5 million barrels per day, sources said on Friday.

Brent crude oil futures fell briefly by more than $1 before recovering slightly to $43.01 by 1505 GMT, while U.S. crude slid below $40 per barrel.

Below are analysts' comments on the OPEC decision:

* HARRY TCHILINGUIRIAN, GLOBAL HEAD OF COMMODITIES STRATEGY, BNP PARIBAS

"Those in OPEC that were individually in a position to cut production were not favourable to a cut, while those in OPEC that could not individually cut their production were pushing for a collective output reduction. The meeting was an impasse even before it started. In any event, a ceiling raise is largely irrelevant as it has no bearing on actual production The market stabilizing and 40 still holding. In the end, New Quota, but same policy."

BRENNAN S HIGGINS, MANAGING DIRECTOR, ENERGY MARKETS DIVISION, OTC TRADING, MACQUIRIE BANK, HOUSTON "The outcome of the meeting looks bearish - especially in the context of today's Non-Farm Payrolls report which gives the Fed the green light to embark on its much-anticipated tightening cycle at this month's meeting. History suggests a stronger dollar amid rising interest rates will not be kind to the oil price. Looking at price, there's a good chance $40.00 becomes a cap on the chart through Q1."

* SETH KLEINMAN,HEAD OF ENERGY RESEARCH, CITIGROUP

"The Saudis clearly feel that their strategy is working and remain committed to it, despite the protests of many other OPEC members. The return of Iran will stress test the oil markets storage capacity constraints in the first half of next year, but Saudi expectations of a better looking second half look reasonable."

* PAUL HORSNELL, HEAD OF COMMODITIES RESEARCH, STANDARD CHARTERED

"Trading longer-term market share against short-term revenues is a hazardous policy, but once started it needs to followed through to the end. That's the argument that has carried the day in OPEC, and the heavy pressure on non-OPEC producers, especially U.S. shale, is going to be kept up."

* FRANK KLUMPP, OIL ANALYST AT STUTTGART-BASED LANDESBANK BADEN-WUERTTEMBERG

"The new quota of 31.5 million bpd looks like an answer to Russian Energy Minister Novak, who said that OPEC should bring back its quota to reality. Prices may stabilise soon because an 'unchanged strategy' was expected from the markets before the meeting."

* OLE HANSEN, SENIOR MANAGER, SAXO BANK