Wednesday, June 15, 2011

OPEC:Bitterness in Vienna

By the end of June,Saudi Arabia will raise its oil production by up to 300,000 barrels a day,in order to restrain the price per barrel.When OPEC ministers met in Vienna recently,there was resistance to the Saudi example.OPEC,the Organisation of Petroleum Exporting Countries,failed to reach an output consensus.It was basically Saudi Arabia versus Venezuela and Iran.
OPEC will evaluate the situation after three months.The next meeting is scheduled for December 13-14 in Vienna.OPEC stocks are currently three days above the five-year average,according to OPEC Secretary General Abdalla Salem El-Badri.
Saudi Arabia is committed to supply the needs of the market,Saudi oil minister Ali El-Naimi said.This was one of the worst OPEC meetings he's ever had,Mr.El-Naimi remarked bitterly.A veteran of six decades of meetings,he saw that six countries were opposed to an increase in production,while six others supported it.It has been at least a decade since OPEC failed to reach a consensus.
OPEC is to maintain its current output for now.Nonetheless,in actuality,Saudi Arabia and three other Persian Gulf states are able to to boost production to the desired quota by themselves,should they so choose.
In spite of all the contention,Mr.El-Badri declared he was confident the cartel will reach a quota deal at the December meeting.To fail again would call the organisation's utility,and indeed its continued existence,seriously into question.

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