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.
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.
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.
Internal OPEC squabbles are on the rise as members argue about the need to support a fair oil price and boost revenues just as they feel more pain from low crude prices, an internal OPEC report seen by Reuters this week showed.
A draft report of OPEC’s long-term strategy (LTS) carries annotations by Iran, Algeria and Iraq, and suggestions from Iran and Algeria for measures to support prices such as a price target or floor and a return to OPEC’s quota system.
OPEC took a swing at U.S. shale and knocked down Canada.
Threatened by surging production from North America, the Organization of Petroleum Exporting Countries has been pumping above its quota for 17 months as it seeks to take market share from higher-cost regions. The resulting 60 per cent price crash is hitting Alberta harder than Texas.
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.