OPEC favors steady output, U.S. disagrees
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VIENNA (Reuters) - OPEC ministers gathered in Vienna are inclined to hold output steady, resisting last-minute pressure from top consumer the United States to pump more oil to help prop up a fragile economy.
OPEC has said triple-digit oil has been driven by factors beyond its control, such as a weak dollar and speculation, and not by any lack of fuel.
Washington believes even a token supply increase from the Organization of the Petroleum Exporting Countries would help to tame a rally that took oil to a record $103.95 on Monday.
But OPEC ministers -- even those closely allied with the United States -- see things differently. Most want to hold output steady at the group's meeting on Wednesday, while a minority wants a cut to prevent a glut.
"Most probably production will not be changed for the time being -- that's our analysis," acting Kuwaiti Oil Minister Mohammad al-Olaim told Reuters.
"I think there is no choice but to roll over," said Qatari Oil Minister Abdullah al-Attiyah.
Attiyah, amongst other ministers, sees comfortable levels of oil stocks and slower demand in the second quarter when consumption typically tapers off following the end of winter.
The seasonal decline in demand could be exaggerated by the impact of economic slowdown.
U.S. oil futures fell by nearly $3 a barrel on Tuesday to below $100, partly in response to concern about the U.S. economy.
Washington says OPEC must raise production by a modest 300,000 barrels per day (bpd) to 500,000 bpd to contain any economic damage.
"I think it's a mistake to have your biggest customer's economy to slow down ... as a result of high energy prices," said U.S. President George W. Bush.
OPEC numbers among its members staunch U.S. allies such as Saudi Arabia, Kuwait and Qatar -- but it also includes Iran and Venezuela, which are hardened foes of Washington.
"Bush is wrong. Always," said Venezuelan Oil Minister Rafael Ramirez.
Ministers are expected to call another meeting soon and to keep monitoring the balance of supply and demand.
The exporter group's 13 members, who pump more than a third of the world's oil, could have an opportunity to reassess the market at producer-consumer talks in Rome on April 20-22.
(additional reporting by Randy Fabi, Simon Webb, Peg Mackey, Writing by Barbara Lewis, Editing by William Hardy)
