OPEC is expected to maintain stable output based on the likelihood of economic recovery and escalating demand, when it meets in Angola next week.
Saudi Oil Minister Ali al-Naimi told Reuters that there might be no need to alter output targets for next year on the basis of supply and demand forecasts.
“Inventories are coming down, the price is perfect and investors, consumers and producers are all very happy,” al-Naimi said.
The surplus supply levels escalated because of an increase in inventories on land and a rise in oil and refined products floating at sea.
OPEC secretary general Abdullah al-Badri told Reuters that oil stored at sea was estimated at 165 million barrels.
According to OPEC’s latest monthly market report, there will be limited demand for OPEC crude as rival supplies increased and surplus oil volumes affect the market in the second half of 2010.
The report also forecast a rise in oil usage in Asia and the US.