OPEC to maintain current output

Oil and Energy Ministers of the member states of Organizations of Petroleum Exporting Countries (OPEC) decided on Wednesday to maintain the group's current output of 31.5 mbd. The decision was taken at a behind-the-doors meeting in the UAE Capital City of Abu Dhabi today at the conclusion of OPEC's Ministerial (Extraordinary) 146th Meeting. ''OPEC decided yesterday to leave production unchanged for the time being,'' said a statement issued at the end of the OPEC Conference here.

Stating reasons behind its action, OPEC said in the concluding statement it had reviewed the oil market outlook, including the overall demand-supply projections for the year 2008, in particular the first and second quarters.

It also observed that the market fundamentals have essentially remained unchanged, with the market continuing to be well supplied and commercial crude/product stocks remaining at comfortable levels in terms of days of forward cover.

OPEC also voiced its concern that the world oil prices remained volatile, in major part due to the perception of market tightness by market players, exacerbated by non-fundamentals factors, including the heavy influx of financial funds into commodities and speculative activity in the markets, whilst geopolitical developments have contributed to price volatility.

''OPEC is determined to take every measures deemed necessary to keep the market stability through the maintenance of supply and demand in balance,'' the statement emphasised. Given the need for extreme vigilance in assessing the market during the coming months, OPEC ministers will convene an Extraordinary meeting in Vienna on February 1st and ordinary meeting on March 5th in Vienna also.

The conference unanimously agreed that members Angola and Ecuador should have a production allocation of 1.9 mbd and 520,000 bd respectively.
(Emirates News Agency, WAM)