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Markets

OPEC ministers see likely status quo on oil output

Published Updated

 VIENNA: OPEC ministers said they would probably reach an agreement to keep their countries' oil output at current levels, as they prepared to discuss the issue at a meeting later Thursday.

"For all of us, the goal is to achieve the consensus. This is the goal of our organisation," Angolan Oil Minister Jose Botelho de Vasconcelos told reporters as he arrived at a separate oil conference in the Austrian capital.

"Last December, the ceiling was (set at) 30 million barrels per day. I think this ceiling is good."

Officially, the Organization of Petroleum Exporting Countries (OPEC), whose 12 members pump a third of the world's crude, has an output target of 24.84 million barrels per day.

However, their actual output ceiling stands at 30 mbpd, which OPEC members agreed in December to maintain even though production exceeds that level.

Thursday's ministerial meeting comes amid concerns over oversupply, a weak global economy, uncertain demand and the impact of Western sanctions on Iran.

"This morning the price rose to $97 but for us a better price is $100, of course," Vasconcelos said, adding that the OPEC ministers might discuss the problem of oversupply.

"Maybe, because we need to have a good level of oil prices," he said.

Libyan Oil Minister Abdel Rahman bin Yezza also expressed concern over current price levels.

"We're always worried about the prices, of course," he told reporters.

Bin Yezza did not elaborate on his preferred level or whether he would be content with prices below $90.

"We have to get together and decide," he said.

Questioned about the likelihood of consensus at the meeting, he also noted the ministers "will have to discuss it" but appeared confident.

OPEC members are divided over how to respond to plunging prices and uncertainties over global energy demand, with kingpin Saudi Arabia recently ramping up production while hawks Venezuela and Iran have called for cuts so as to boost prices.

Copyright AFP (Agence France-Presse), 2012

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