Opec calls for hike in output quota
September 15, 2004
Vienna - Saudi Arabia and other Gulf oil producers favor increasing Opec oil output quotas by one million barrels per day, officials said on Wednesday ahead of a meeting of the cartel's energy ministers.
"The recommendation is to increase the ceiling (by) about one million," said Kuwait's oil minister, Al Ahmad al-Sabah, as he headed into an informal breakfast before the start of the conference.
"This is the recommendation of some members of Opec."
Saudi Oil Minister Ali al-Nuaimi also mentioned the one-million bpd figure.
The statements came as ministers of the 11-state Organisation of Petroleum Exporting Countries were due to open a conference at the cartel's headquarters in Vienna.
Analysts questioned the real impact of a quota hike, because 10 Opec members are estimated to be pumping between 1.5 and 2.0 million bpd above the official total ceiling of 26 million bpd. Iraq is excluded from the quota system.
"I think we will continue to produce what where we're producing now because still the price and the market need to supply with 29.6 (bpd)," Kuwait's Sabah said.
"We still give the market the message that Opec will continue to work positive to the stability of the market," he said.
Market watchers were waiting to hear what action, if any, Opec ministers would take Wednesday as oil prices soar near record highs.
Oil prices pressed higher in Asian trade ahead of the Opec meeting amid concerns over possible supply disruptions in the Gulf of Mexico due to powerful Hurricane Ivan, dealers in Singapore said.
New York's reference contract, light sweet crude for October delivery was at $44.71 a barrel, up from $44.39 in New York overnight.
Saudi Arabia's leaning toward a quota hike of one million bpd Wednesday seemed to strike a compromise within the cartel. Previously it had belonged to the camp opposing a quota change, which includes Venezuela, Libya, Nigeria and Qatar.
Indonesia, Algeria and Kuwait had called for a quota increase on Tuesday. - AFP
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