OPEC accelerating plans to increase oil production

LONDON (Thomson Financial) – OPEC is attempting to speed up plans to bring more oil production to market due to rapidly rising demand from China and India, according to experts gathered at international think tank Chatham House for a conference on Middle East energy supplies.

“OPEC plans to increase output by 3 mln bpd by 2012. They are accelerating their plans to cope with rising demand and to provide a spare capacity cushion for the market,” one speaker said.

Earlier at the conference, speakers warned that oil prices will rocket should rising demand and shrinking oil fields lead to a shortfall in supplies.

They underlined that global crude demand is set to soar on the back of Chinese and Indian economic development.

OPEC has been criticised by consuming countries for holding production quotas steady at the cartel’s last two get togethers, despite oil remaining near 90 usd a barrel.

Thomson Financial