AFP - The Organization of Petroleum Exporting Countries has agreed to keep its official oil production target at 24.84 million barrels a day, OPEC president Wilson Pastor-Morris of Ecuador said on Thursday.
Vienna (AFP) - The OPEC oil producers cartel meets in Vienna on Thursday for a pivotal decision on whether to reduce the amount of oil it produces, faced with a global supply glut that has massively depressed crude prices.
A subtle shift may be taking place within OPEC as it heads into its most important meeting in years, according to delegates with the producer group, as the discussion over whether it needs to cut output to defend oil revenues quietly intensifies.
OPEC’s Secretary General Abudulla al-Badri this week urged markets not to panic over the drop in prices to a 4-year low near $81 a barrel, while Kuwait’s oil minister said OPEC was unlikely to cut output when it meets on Nov. 27 in Vienna.
OPEC cut the forecast for how much crude oil it will need to provide in 2015 to the lowest in 12 years amid surging U.S. shale supplies and reduced estimates for global consumption.
The Organization of Petroleum Exporting Countries lowered its projection for 2015 by about 300,000 barrels a day, to 28.9 million a day. That’s about 1.15 million a day less than the group’s 12 members pumped last month, and the 30-million barrel target they reaffirmed at a meeting in Vienna on Nov. 27. The impact of this year’s 40% price collapse on supply and demand remains unclear, OPEC said.
OPEC holds a ministerial meeting Wednesday to decide on oil production levels, with markets expecting the cartel to maintain its official quota as a weak global economy hits demand for crude.But the Organization of Petroleum Exporting Countries may decide to trim its actual production, which stands above the agreed ceiling, as OPEC hawks Venezuela and Iran seek to keep oil prices high.The Vienna-based organisation, which supplies a third of the world's crude, has had an output target of 24.84 million barrels per day (mbpd) for three years.
OPEC bolstered forecasts for the amount of crude it will need to provide this year as the economic recovery stokes global fuel consumption. Iraq, its second-largest member, pumped the most oil since 1980.
The Organization of Petroleum Exporting Countries forecast the world will need less of its crude next year, even as global oil demand growth rebounds to its strongest pace since 2010, amid competing supply sources.