OPEC might consider cutting its crude production

Jakarta (Platts)–6Oct2004

OPEC might consider cutting its crude production ceiling if OECD oil stocks continue rising from the current levels of between 2.5- and 2.6-bil bbl to 2.7-bbl bbl in November 2004, which the cartel fears could put a bearish pressure on the market, acting OPEC secretary-general Maizar Rahman said Wednesday.
OECD oil stocks have been rising since April this year, Maizar, who is also Indonesia’s OPEC representative, told reporters in the Indonesian island of Bali, on the sidelines of the fifth meeting of the Joint Oil Data Initiative.

The three-year-old initiative promotes regular exchange of oil production and consumption data by countries globally for greater market transparency. OPEC decided to raise the combined production ceiling of its 10 members bound by quotas by 1-mil b/d to 27-mil b/d effective Nov 1 at its last ministerial meeting in Vienna Sep 15, after a ceiling hike of 2.5-mil b/d effected over July and August failed to rein in oil prices. Benchmark light sweet US crude closed at an all-time high of $51.09/bbl on NYMEX Tuesday.

Meanwhile, OPEC predicts world oil demand will rise by 1.7-mil b/d in 2005, compared with an increase of 2.5-mil b/d this year, Maizar said. OPEC has estimated world oil demand at 81.1-mil b/d in the third quarter of this year and at 83-mil b/d for the fourth quarter. The group expects world oil production in 2004 to average 81.6-mil b/d and predicts the 2005 figure at 83.3-mil b/d. Of the next year’s projected figure, 55.4-mil b/d will come from non-OPEC countries and 27.9-mil b/d from OPEC, Maizar added.

http://www.platts.com/

Direct link not possible, sorry!