Organization of the Petroleum Exporting Countries dismissed further calls to boost oil output from top consumer the United States, saying the global market is well supplied and the producer group has little control over oil prices near $90 a barrel. US energy secretary Sam Bodman had earlier urged Saudi Arabia and
Organization of the Petroleum Exporting Countries to raise supply.
His appeal came just days after President George W. Bush asked the group for more oil on a separate visit to Riyadh, and less than two weeks before OPEC's next meeting on February 1.
"I don't think there is a need to increase because the market is well supplied," Qatari Oil Minister Abdullah Al Attiyah said on the sidelines of a conference in Abu Dhabi.
Organization of the Petroleum Exporting Countries to raise supply.
His appeal came just days after President George W. Bush asked the group for more oil on a separate visit to Riyadh, and less than two weeks before OPEC's next meeting on February 1.
"I don't think there is a need to increase because the market is well supplied," Qatari Oil Minister Abdullah Al Attiyah said on the sidelines of a conference in Abu Dhabi.
Organization of the Petroleum Exporting Countries is keeping a close eye on the market and stood ready to pump more when needed, Organization of the Petroleum Exporting Countries secretary-seneral Abdullah Al Badri said.
"If we reach the conclusion the fundamental data warrant an increase in production, then our oil ministers will not hesitate to decree this," Badri said. "But at present we see no need for this."
Bodman and Bush, concerned about the impact of high prices on the world's largest economy, have said more oil would help ease tight supplies.
Organization of the Petroleum Exporting Countries officials say that speculation has divorced the oil price from market fundamentals, leaving it with little power to tame high energy costs.
"You have to segregate the physical market from the paper market," Al Attiyah said. "We've checked with our clients and they've confirmed that they don't feel there is a need for more oil. Oil inventories are comfortable."
Al Attiyah said he would meet with Bodman later this week. Last week, he said the producer group needed to be cautious ahead of the seasonal drop in consumption in the second quarter and because of the possible effect on oil demand of a US recession.
"If we reach the conclusion the fundamental data warrant an increase in production, then our oil ministers will not hesitate to decree this," Badri said. "But at present we see no need for this."
Bodman and Bush, concerned about the impact of high prices on the world's largest economy, have said more oil would help ease tight supplies.
Organization of the Petroleum Exporting Countries officials say that speculation has divorced the oil price from market fundamentals, leaving it with little power to tame high energy costs.
"You have to segregate the physical market from the paper market," Al Attiyah said. "We've checked with our clients and they've confirmed that they don't feel there is a need for more oil. Oil inventories are comfortable."
Al Attiyah said he would meet with Bodman later this week. Last week, he said the producer group needed to be cautious ahead of the seasonal drop in consumption in the second quarter and because of the possible effect on oil demand of a US recession.
Via: Gulf Daily News
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