OPEC, the producer of more than 40 percent of the world's oil, agreed to keep production targets unchanged as ministers rejected calls for more supply with prices near $90 a barrel.
The Organization of Petroleum Exporting Countries will meet again on Feb. 1 in Vienna to review today's decision, said Iran's OPEC governor, Hossein Kazempour Ardebili. Iran, Venezuela, Qatar and most other members had opposed a proposal to raise supply by 500,000 barrels a day at the meeting in Abu Dhabi.
Crude oil for January delivery rose $1.73, or 2 percent, to $90.05 a barrel on the New York Mercantile Exchange at 11:10 a.m. London time. Prices had fallen by more than $10 from a record $99.29 on Nov. 21 and ministers including Venezuela's Rafael Ramirez said that decline meant OPEC should reject a U.S. request for more oil.
``The case to raise production is not compelling for OPEC,'' said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. ``The outlook for demand in 2008 is uncertain and raising output may create a supply glut.''
The target for 10 of OPEC's 13 members will remain at 27.253 million barrels a day.
Saudi Arabian Oil Minister Ali al-Naimi and Qatar's Abdullah al-Attiyah had said in recent days that the market has enough crude. Organization of Petroleum Exporting Countries agreed at its last meeting in September to raise output by 500,000 barrels a day starting Nov. 1, a move that failed to prevent last month's rally.
`Dark Clouds'
``Technically and fundamentally they've called it right,'' said Michael Davies, an analyst at Sucden (U.K.) Ltd. in London. ``There are some real dark clouds over the U.S. and U.K. economies, and they could spread to the rest of the world.''
Al-Naimi declined to comment on the decision when Organization of Petroleum Exporting Countries ministers emerged from closed door talks just before 3 p.m. Abu Dhabi time, 11 a.m. London time. OPEC's internal production watchdog committee, had recommended that Organization of Petroleum Exporting Countries maintain its current oil production targets, Iranian Oil Minister Gholamhossei Nozari, who chairs the committee, said earlier today.
Oil prices are ``very high'' and ministers should respond, as energy costs increase and mortgage losses slow the economy, U.S. Energy Secretary Samuel Bodman said yesterday in Washington.
Organization of Petroleum Exporting Countries President Mohamed al-Hamli today said speculation, refining bottlenecks and political events are partly to blame for high oil prices. He said Ecuador rejoined OPEC, to become its 13th member today.
Twenty-three of 42 analysts in a Bloomberg News survey this week, or 55 percent, had expected Organization of Petroleum Exporting Countries members to maintain production at current levels. The rest expected an increase of between 500,000 and 750,000 barrels a day.
`Well-Supplied'
Deutsche Bank AG Chief Energy Economist Adam Sieminski said yesterday that the exporter group's ``safest course'' is probably to keep output targets steady and hold another meeting at its Vienna headquarters early next year.
Libya's top oil official, Shokri Ghanem, said there's no need for an increase in output as the market has sufficient oil. Yesterday, he said he is more concerned about fluctuations in the value of the dollar than oil prices, which he called ``reasonable'' in real terms.
Oil-exporting nations are paid in U.S. dollars. Most OPEC members have resisted calls by Iran and Venezuela for the group to price oil in other currencies.
Twelve OPEC members pumped 31.14 million barrels of crude a day in November, while the 10 members subject to quotas produced 27.09 million barrels a day, according to Bloomberg estimates published yesterday.
The Organization of Petroleum Exporting Countries will meet again on Feb. 1 in Vienna to review today's decision, said Iran's OPEC governor, Hossein Kazempour Ardebili. Iran, Venezuela, Qatar and most other members had opposed a proposal to raise supply by 500,000 barrels a day at the meeting in Abu Dhabi.
Crude oil for January delivery rose $1.73, or 2 percent, to $90.05 a barrel on the New York Mercantile Exchange at 11:10 a.m. London time. Prices had fallen by more than $10 from a record $99.29 on Nov. 21 and ministers including Venezuela's Rafael Ramirez said that decline meant OPEC should reject a U.S. request for more oil.
``The case to raise production is not compelling for OPEC,'' said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney. ``The outlook for demand in 2008 is uncertain and raising output may create a supply glut.''
The target for 10 of OPEC's 13 members will remain at 27.253 million barrels a day.
Saudi Arabian Oil Minister Ali al-Naimi and Qatar's Abdullah al-Attiyah had said in recent days that the market has enough crude. Organization of Petroleum Exporting Countries agreed at its last meeting in September to raise output by 500,000 barrels a day starting Nov. 1, a move that failed to prevent last month's rally.
`Dark Clouds'``Technically and fundamentally they've called it right,'' said Michael Davies, an analyst at Sucden (U.K.) Ltd. in London. ``There are some real dark clouds over the U.S. and U.K. economies, and they could spread to the rest of the world.''
Al-Naimi declined to comment on the decision when Organization of Petroleum Exporting Countries ministers emerged from closed door talks just before 3 p.m. Abu Dhabi time, 11 a.m. London time. OPEC's internal production watchdog committee, had recommended that Organization of Petroleum Exporting Countries maintain its current oil production targets, Iranian Oil Minister Gholamhossei Nozari, who chairs the committee, said earlier today.
Oil prices are ``very high'' and ministers should respond, as energy costs increase and mortgage losses slow the economy, U.S. Energy Secretary Samuel Bodman said yesterday in Washington.
Organization of Petroleum Exporting Countries President Mohamed al-Hamli today said speculation, refining bottlenecks and political events are partly to blame for high oil prices. He said Ecuador rejoined OPEC, to become its 13th member today.
Twenty-three of 42 analysts in a Bloomberg News survey this week, or 55 percent, had expected Organization of Petroleum Exporting Countries members to maintain production at current levels. The rest expected an increase of between 500,000 and 750,000 barrels a day.
`Well-Supplied'
Deutsche Bank AG Chief Energy Economist Adam Sieminski said yesterday that the exporter group's ``safest course'' is probably to keep output targets steady and hold another meeting at its Vienna headquarters early next year.
Libya's top oil official, Shokri Ghanem, said there's no need for an increase in output as the market has sufficient oil. Yesterday, he said he is more concerned about fluctuations in the value of the dollar than oil prices, which he called ``reasonable'' in real terms.
Oil-exporting nations are paid in U.S. dollars. Most OPEC members have resisted calls by Iran and Venezuela for the group to price oil in other currencies.
Twelve OPEC members pumped 31.14 million barrels of crude a day in November, while the 10 members subject to quotas produced 27.09 million barrels a day, according to Bloomberg estimates published yesterday.
Via: Bloomberg| by Julie Ziegler and Fred Pals
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