OPEC Stands Firm on Output

Oil output is set to remain unchanged at the 148th meeting of the Organisation of Petroleum Exporting Countries (OPEC) today, as ministers resist renewed calls from the US to increase supplies to help its economy.

In his opening speech, Minister of Energy and Mines of Algeria and President of the Conference Dr Chakib Khelil spoke of a "new phase" for oil markets as the world economy enters a period of slower growth compared to the last six years of expansion.

Prices are being determined by "the ongoing bottlenecks in the refining sector, production problems in some countries, geopolitical developments in certain regions and the fall in the value of the US dollar, which has encouraged inflows of new money into the crude oil futures market," says Dr Khelil.

Yesterday, US President George Bush announced that a modest output increase of 300,000 barrels per day (bpd) to 500,000 bpd could help curb any economic damage following a rise in prices, which hit a record US$103 on Monday.

Prices eased to just above US$100 a barrel today.

In September 2007, OPEC members voted to increase crude oil supply by 500,000 barrels a day, with effect from 1 November.

OPEC is now producing 32 million barrels a day.

By Ozge Ibrahim