OPEC to Take No Action on Oil Supply This Year

17 March 2010 (Last Updated March 17th, 2010 18:30)

Oil demand is picking up as global recovery strengthens, allowing OPEC to take no action on supply this year, the group's biggest producer Saudi Arabia said. The statement came as the oil cartel was preparing to rubber stamp existing targets, reports Reuters. "We have been sa

Oil demand is picking up as global recovery strengthens, allowing OPEC to take no action on supply this year, the group's biggest producer Saudi Arabia said.

The statement came as the oil cartel was preparing to rubber stamp existing targets, reports Reuters.

"We have been sailing very well and we will continue to sail very well," Saudi Arabian Oil Minister Ali al-Naimi told reporters, as other members voiced concerns that OPEC is pumping too much oil.

In December 2008, OPEC members said they would slash 4.2 million barrels per day (bpd) from output to curb supply at 24.84 million bpd.

Due to rising prices in the last year and a hesitant global recovery, revenue-hungry OPEC members have increased supply.

In February, OPEC delivered just 53% of the pledged output curbs – down from 81% a year ago.

Naimi said on Tuesday that Saudi Arabia is producing 8.0-8.1 million bpd, well below capacity, giving it the greatest ability among members to alter crude supplies, reports Reuters.