OPEC: We’ll fill oil supply gaps

Delegate says cartel will cover any Nigerian shortfall, January production cuts are unlikely.

DUBAI (Reuters) – Saudi Arabia and its OPEC partners are ready to pump more oil to fill any supply gap from Nigeria, a senior OPEC delegate said Thursday, ahead of a Jan. 31 meeting that is likely to stick with current output.

Militant attacks on Nigeria’s oil sector have cut into exports, pushing oil prices back up toward $70 a barrel. The world’s fourth-biggest oil exporter, Iran, is at odds with the West over its nuclear program, adding to supply concerns.
“OPEC is unlikely to cut production in January as things stand right now,” the OPEC delegate told Reuters. “Saudi Arabia and some OPEC producers are capable and willing to increase production if there is an actual need for extra oil.”

His comments were echoed by Algerian Energy and Mining Minister Chakib Khelil, who said he did not expect OPEC to cut output because this would increase upward pressure on prices.

The cost of oil is at a level unseen in real terms since the 1979 Iranian revolution. Consumer nations are worried their economies will suffer.

Reuters