OPEC sees no need to meet, supply ample: delegate

LONDON Wed Mar 9, 2011 7:11am EST

LONDON (Reuters) - OPEC sees no need at present to hold an emergency meeting to discuss raising its oil output, because supply is adequate, an OPEC delegate said on Wednesday following informal consultations among members.

The 12-member Organization of the Petroleum Exporting Countries has been talking about whether it needs to meet due to rising prices and the loss of Libyan supplies. The group believes that supply is adequate, said the delegate, who declined to be identified.

"There have been consultations and we don't see a need to meet at the moment," the delegate said.

Brent crude oil rose on Wednesday by 79 cents to $113.27 a barrel as of 11132 GMT. Oil prices had fallen on Tuesday after Kuwait's oil minister said OPEC was in talks about boosting supplies and holding an early meeting.

OPEC's next scheduled meeting to review output policy is in June. Secretary General Abdullah al-Badri has been speaking to member countries to find out whether they believed an earlier meeting was warranted.

According to the OPEC statute, an extraordinary meeting may be convened at the request of a member country by the secretary general, after consultation with the president and approval by a simple majority of members.

'NO SHORTAGE'

OPEC's rotating presidency is held this year by Iran, which on Tuesday downplayed speculation of more OPEC oil and said "no concrete decision" had been made on whether to hold a meeting.

"There is no shortage in the market," Iranian OPEC governor Mohammad Ali Khatibi told Reuters. Iran is OPEC's second-largest producer and its leading price hawk.

The fighting in Libya has shut down about two-thirds of the oil output in Africa's third-largest producer. The OPEC member normally pumps 1.6 million barrels per day (bpd) of high-quality oil, or about 2 percent of world output.

While OPEC has not changed its formal output policy for more than two years, its members have been boosting actual supply for months in response to rising oil prices and demand.

Top world exporter Saudi Arabia has offered extra supplies to replace lost Libyan barrels and said on Tuesday it had developed a "special mix" of crude close in quality to the supplies lost.

Oil traders and analysts have been skeptical that Saudi Arabia is able to pump enough oil of similar quality to Libya's high-quality crude supplies.

Saudi Arabia has raised its output to 9 million barrels per day (bpd), almost 1 million bpd more than its OPEC target.

Some other OPEC members, such as Nigeria, are expected to provide smaller increases in coming weeks.

(Editing by Will Hardy and Jane Baird)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (3)
limapie wrote:
I received a newsletter from Wisconsin Democratic Senator Herb Kohl
saying, (like) ‘OH, how bad it is for OPEC to organize and hold the world
hostage like this. We’re going to do something in Washington.’
(like they could)

Not to be on OPEC’s side, but……if the democratic party ok’s public workers organizing and running rim-shot, then what’s wrong with OPEC doing it?

Thirty-two (32) years ago, eight (8) administrations ago, America realized that depending on foreign oil was not a good idea.
And here we are today, the same as in 1979.

There was a man in NH that designed a new car engine that was going to revolutionize the world. He met with three large American car manufacturers who purchased his idea and then G-canned it.

Listen,, America has ONLY THEMSELVEs to blame for this….mostly
corporation America.

Mar 09, 2011 11:30am EST  --  Report as abuse
tubbycwilson wrote:
We are being held hostage by our total dependency on petroleum. It takes approximately 20 years to develop the next energy supply, if it is relatively new, like wind. We need to focus on where we will be in 20 years if we don’t develop this energy evolution! Do you feel OPEC and others will become benevolent in the next 20 years, their track record says “charge them to the absolute limit”, and they do! Let’s get with the program before it’s too late!

Mar 09, 2011 7:03pm EST  --  Report as abuse
maltadefender wrote:
… the Saudis are tapped out…get used to it

“Sadad al-Husseini, a geologist and former head of exploration at the Saudi oil monopoly Aramco, met the US consul general in Riyadh in November 2007 and told the US diplomat that Aramco’s 12.5m barrel-a-day capacity needed to keep a lid on prices could not be reached”

from wikileaks

Mar 10, 2011 12:27am EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.