A senior oil and gas official from the Gulf region has said that the oil cartel OPEC is likely to stick with its current output levels when it meets in Vienna next week.
“A senior Gulf source said the organisation will keep at the current targeted levels, but it will reiterate the need for complete compliance with them,” Saudi Arabian newspaper Al Hayat reported.
Oil is currently trading at around the US$60 a barrel mark and has eased the financial worries of many of the 12 members of OPEC who rely on oil exports to meet fiscal budget requirements.
IHS Global Insight analyst, Catherine Hunter believes that most of OPEC’s members are reluctant to make further cuts while oil prices are at a 2009 high.
“The latest comments from OPEC members see Iran more or less alone in consistently advocating further quota reductions at the next OPEC meeting at the end of the month, with others, including Algeria, seeing non-compliance with current targets and fragile global economic recovery as persuasive forces for restraint,” Hunter said.
“Unless oil prices start to move closer to the rhythm of rising inventories and retreating demand, rather than their current shadowing of positive financial market news, early signs are for a “hold” at OPEC’s next meeting, pushing back a decision on next steps to the group’s next scheduled meeting in September,” she added.
