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Rise in OPEC output not needed

Despite western pressures to increase oil production, Venezuela’s Oil Minister Ramirez says raising the OPEC output ceiling is not necessary, PressTV reported. Oil rises above $88 today, on global stock markets surge.

Rafael Ramirez told reporters on Monday that the oil price has seen great fluctuations in the market and this by itself is an indication of the role played by speculation. This is happening while the US Energy Secretary, Samuel Bodman, recently asked Saudi Arabi to supply larger volumes of oil to the market. Based on reports so far received on the issue, the initial reaction to this request by OPEC nations has been cautious. Analysts are of the view that a decrease of 10% in oil prices from the record high of $109 at the beginning of the current month has eased some of the pressure on OPEC members to increase their output ceiling. Bodman told reporters yesterday in Abu Dhabi that there were some short-run concerns about the US economy. He hoped once again that OPEC nations would consider increasing OPEC production at their next meeting in Vienna.

OPEC doesn’t need to increase crude- oil production when it meets next week, ministers from Qatar, the United Arab Emirates and Iraq said. “I don’t see the need for more, the market is well balanced,” Qatar’s Energy Minister Abdullah bin Hamad al- Attiyah said in Davos, Switzerland, today after meeting with his UAE counterpart Mohamed al-Hamli. “I don’t think there is any need of extra production” from OPEC, Iraqi Oil Minister Hussain al-Shahristani said in Davos.

Oil climbed above $88 a barrel on Thursday after a rebound in world equity markets helped cool simmering fears of a recession in top energy consumer the United States. US crude jumped $1.43 to $88.42 a barrel by 7:00 a.m. EST, after settling at a 13-week low of $86.99 in the previous session. London Brent crude rose $1.46 to $88.08. (Iranmania, canada.com)