First Published: 2005-02-22

 
OPEC president sees no need for output cut now
 

Sheikh Ahmad says OPEC ceiling will be maintained if oil prices rise this week.

 

Middle East Online

By Omar Hasan - KUWAIT CITY

Oversupply will go for new demand

OPEC president and Kuwait's Energy Minister Sheikh Ahmad Fahd al-Sabah said Tuesday there was no need for the oil cartel to cut output at present, but that the market must be monitored carefully.

"Until now, we don't have to cut. Until now, the price is very high and we have to respect this price and cooperate with others for the stability of the market," the minister told reporters in parliament.

Oil prices rose this week, supported by fears that OPEC could cut production at a meeting in Iran next month.

Asked if he supported the idea of a production cut at the meeting in Isfahan on March 16, Sheikh Ahmad said that if prices remain at the current level, the same OPEC ceiling will be maintained.

"All signals show that there will be a good demand in the second quarter ... With the prices now, I don't think there is a reason we will cut," he said.

"If the demand will continue in the second quarter, especially from China and other Asian countries, then we don't have to cut because the oversupply will go for new demand. It will not go to build the stocks," which could go above the average, he said.

"With the prices high, the geopolitical problems and the average stocks until now, I think we are keeping the same ceiling" of 27 million barrels per day (bpd) adopted at an OPEC meeting on December 10, he added.

The 11-member cartel decided at its last meeting in Vienna on January 30 to maintain output levels at 27 million bpd but hinted that high prices for crude were here to stay and that it may cut output soon.

World oil prices soared on Tuesday, supported by colder temperatures hitting the US northeast and Europe, dealers said.

New York's main contract, light sweet crude for delivery in March, surged 1.21 dollars to 49.56 dollars a barrel in electronic dealing.

Trading in the contract had been closed Monday due to a public holiday in the United States.

In London, the price of Brent North Sea crude oil for delivery in April gained 60 cents to 47.33 dollars a barrel.

Analysts noted that prices were supported also by the prospect of a possible output cut by OPEC next month.

"Speculation that OPEC may cut output at its next meeting have put a floor under" prices, analysts from the Sucden brokerage firm said.

 

Heavily bombarded Eastern Ghouta awaits UN resolution

Russia pours cold water on UN bid to condemn Iran over missiles to Yemen

Saudi Arabia to boost entertainment in next decade

Dutch parliament recognises 1915 Armenian massacre as genocide

Blatter supports Morocco bid for 2026 World Cup

Iran police shoving headscarf protester sparks social media storm

Syria regime continues to pound Ghouta as world stutters

UN Security Council to vote Friday on Syria ceasefire

Dubai says Djibouti illegally seized African port

Russia says Syria rebels rejected offer to evacuate E. Ghouta

UN diplomats press for Syria ceasefire without Russia veto

Iranian minister’s presence at UN rights meeting angers critics

Iran warns it will leave nuke deal if banks cannot do business

Qatar to plant thousands of trees to ‘beautify’ World Cup venues

Pro-Kurdish party says Turkey lying about 'no civilian deaths' in Afrin

African migrants protest Israeli detention policy

Egypt sentences 21 to death for planning attacks

Israeli handball teams in Qatar spark furious outcry from locals

UN report highlights S.Sudan journalist treatment

Palestinian dies after being shot by Israeli soldiers

Gulf states urge Syria to end Ghouta violence

Wanted Bahraini militants die at sea en route to Iran

Iran's Ahmadinejad calls for immediate free elections

Merkel calls for end to 'massacre' in Syria

Iraq urges FIFA to lift ban on hosting internationals

Carnage of Ghouta's bombs breaking families

Blockaded Gaza Strip forced to pump sewage into sea

African migrants start hunger strike over Israel expulsion

UN chief 'deeply alarmed' by Eastern Ghouta violence

Three militiamen killed in Libya car bomb attack

Russia denies ‘groundless’ accusations of role in Ghouta killings

Turkey says whoever helps YPG is 'legitimate target'

Morocco dismantles IS-linked terrorist cell

Turkey urged to end gas standoff with Cyprus

PKK attack near Iraq kills 2 Turkish soldiers

Netanyahu confidant to testify against him

Iran emergency teams recover bodies from plane crash site

Ten dead in more Syrian regime strikes on East Ghouta

Bahrain activist sentenced to 5 years for Yemen tweets

Lebanese president makes landmark visit to Iraq

US declares readiness to talk Mideast peace

Bloodbath in Syria's eastern Ghouta

Abbas calls for peace conference in rare UN speech

Egyptian court adds leading government critic on terror list

Yemen government offensive threatens heritage site