OPEC undecided on output, sees market balanced: source

By Chen Aizhu

FUZHOU, China (Reuters) - OPEC is still deciding whether to adjust crude output next month, and so far sees a "balanced" market, a senior Gulf source told Reuters on Tuesday in the Chinese city of Fuzhou, on condition of anonymity.

Asked about the chances of a change in output by the oil-producing bloc, he said: "It's too early to say. We'll be looking at numbers.

"We are not looking at the price alone, we are also looking at how demand and supply is doing. For now, stock levels are very comfortable and supply is meeting demand. The market is balanced."

Asked what was driving prices, he said: "Some of it is expectation, some of it is speculation."

The Organization of the Petroleum Exporting Countries will meet in Angola on December 22 to decide on its oil production policy. United Arab Emirates Oil Minister Mohammed al-Hamli said on Saturday that raising production was not currently on the agenda, while both Iran and Venezuela have said OPEC does not need to increase production.

Top oil producer Saudi Arabia will lift supplies to big oil companies in December, industry sources said on Monday.

Saudi Oil Minister Ali al-Naimi told Reuters in September that he saw increasing demand for Saudi crude as evidence of the world economy recovering from recession, with no need for OPEC to cut output next year.

U.S. light crude prices have hovered close to $80 per barrel in the last three weeks, slipping $0.48 to $78.95 by 0923 GMT (4:23 EST) on Tuesday, having slumped below as $33 in January this year.

The surge in prices has prompted some voices within OPEC to raise the possibility of an output rise at the December meeting, if the rally continues.

(Reporting by Chen Aizhu; writing by Tom Miles; Editing by Chris Lewis)