Opec is concerned about turmoil in Libya but has enough surplus capacity to cover any shortfall caused by the rebellion against Muammar Gaddafi, Iraqi Oil Minister Abdul-Kareem Luaibi said on Thursday. Luaibi said current world oil prices were acceptable and were not affecting the global economy. "The concern is there ... but Libya's oil exports are limited and Opec has surplus capacity, much more than what Libya produces," he told reporters in Baghdad.
Although the stability of global oil prices was difficult to estimate, Luaibi said, he did not expect a big increase in the next two or three weeks as Saudi Arabia, the most influential member of Opec with the biggest spare capacity, is able to pump more oil to put a cap on prices when needed.
-- Saudi Arabia can shoulder additional supply
"We (Opec) are careful that prices are stable and do not affect (global) economic growth," he said, after a ceremony at the ministry's oil development and research centre. "Until now, the prices do not constitute a danger to global economic growth ... for us the prices are acceptable." Oil prices were trading below $116 on Thursday after the Arab League said a peace plan for Libya was under consideration.
Luaibi said there had been no talks to date of Opec holding an extraordinary meeting over the Libya situation. The group's next meeting is scheduled for June. Iraq aims to export more than 2.2 million barrels per day in March, Luaibi said, adding Iraq is on track with building new export facilities that could boost its export capacity from Basra by more than half of its existing 1.8 million bpd.
"We have a new project to set up a new export system that is expected to be completed before the end of this year to add export capacity that could exceed 50 percent of the current capacity," he said. February exports were 2.202 million bpd, Iraq's highest since the 2003 US-led invasion, and up from 2.16 million bpd in January.
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