OPEC to weigh modest oil supply boost

OPEC will weigh a modest boost to oil supply at a meeting on Wednesday, but a $10 retreat last week in crude prices from a record high near $100 a barrel could tip the balance away from pumping more.

The group that exports about 60 percent of the world's oil mostly shares the unease of consumer governments about high prices which add a strain to the world economy.

"OPEC will play its responsible role if there is a need for it to intervene and increase production after analysing the market," Kuwait's acting oil minister, Mohammad al-Olaim, told Reuters .

An increase would be the Organization of the Petroleum Exporting Countries' second this year and would come as concern grows about the health of the U.S. economy and amid signs that high prices are slowing demand for oil, the main source of OPEC countries' income.

Top world exporter Saudi Arabia has expressed concern about high prices but has avoided any comment on likely policy.

Indonesia, with limited influence as one of OPEC's smallest producers, has said it would support an increase of 500,000 barrels per day -- almost 2 percent of supply from the 10 members bound by quotas.

There is a common view in the 13-member group that consumers have enough crude and that speculators, a weak dollar and political tension have sent prices soaring.

"There is absolutely ample supply," Saudi Oil Minister Ali al-Naimi, OPEC's most influential voice, said last week.

"The price movement has nothing to do with the fundamentals of the market."

OPEC officials made similar noises at a meeting in September when, with oil a touch under $80, they decided to raise supply by 500,000 bpd from November 1, a step that failed to stem the rise in prices.

Saudi Arabia, which holds most of OPEC's unused production capacity, was the driving force behind that increase, which price hawks including Venezuela opposed until the last minute.

"In Abu Dhabi, we'll see if the Saudis pull something out of the hat at the last minute," said Paul Tossetti, director of market analysis at Washington-based PFC Energy.

"They are the only ones with the capacity to make any difference."

Oil fell more than $2 to below $89 a barrel on Friday, partly on expectations that OPEC will boost output. It has dropped from a record $99.29 in late November.

Consumers represented by the International Energy Agency are worried about falling inventories when seasonal demand is rising ahead of the northern hemisphere winter.

The IEA said on November 13 that oil stocks in member-countries of the Organisation for Economic Cooperation and Development fell in September to equal 52.8 days of demand, close to the five-year average.

OPEC says it can make a considerable output increase if needed. The Saudi oil minister puts the group's spare capacity at 3 million bpd, of which Riyadh holds the bulk.

The supply target for the 10 OPEC members bound by production decisions -- all except Iraq, Angola and new member Ecuador -- rose to 27.25 million bpd as of November 1.

Angola is expected to receive a supply allocation of around 2 million bpd at the meeting, a level tailored to accommodate the country's steady production growth.

Some analysts say the outlook for the first quarter does not imply a tight market -- and note that a further drop in prices could steer OPEC towards leaving policy unchanged.

OPEC's most recent figures peg demand first-quarter demand for its crude at 31.35 million bpd, up from October production of 31 million bpd for 12 members minus Ecuador.

"I'd put a 60 percent chance of an increase of 500,000 barrels per day," said Mike Wittner of Societe Generale.

"The first quarter is actually pretty balanced for oil supplies," he said. "There isn't a great need for OPEC oil. If prices continue to ease, maybe they don't do anything."

Teimur Radjabov defeats Levon Aronian at Skilling Open tournament
Teimur Radjabov defeats Levon Aronian at Skilling Open tournament
Azerbaijan investigating criminal case against Armenian ex-minister
Azerbaijan investigating criminal case against Armenian ex-minister
Azerbaijan confirms 634 more COVID-19 recoveries
Azerbaijan confirms 634 more COVID-19 recoveries
Loading Bars
Latest
Chinese mainland reports 2 new domestically transmitted COVID-19 cases
UNICEF working with over 350 partners to deliver COVID-19 vaccines
Kazakhstan reports 678 new coronavirus cases, total at 126,860
Georgia talks about funds mobilized as result of privatization
Trump authorizes administration to begin transfer of power to Biden
UK records another 15,450 coronavirus cases with 206 deaths
U.S. agency tells Biden he can formally begin transition
Uzbek bank funds creation of greenhouse in Uzbekistan’s Zangiata district
NATO, EU invite Biden to rebuild transatlantic ties
Turkey reports 6,713 new COVID-19 cases, 453,535 in total
Israeli airline El Al announces direct flight route to UAE
China launches Chang'e-5 to collect, return moon samples
UN working on deploying mine clearance mission to Nagorno-Karabakh
UN says US’ decision to withdraw from Open Skies Treaty is regrettable
Number of COVID-2019 cases across globe up by over 542,000 in past day
Uzbek-Chinese construction enterprise eyes increasing production
Demand for Turkish steel growing on Turkmen construction market
Total 10M2020 capital of Turkey-registered Azerbaijani companies revealed
Azerbaijan’s Baku Metro opens tender to buy equipment
Iran exports to CIS hit $692mn in six months: TPO
Flag of Azerbaijan raised at former secondary school of Gulabli village in Aghdam (PHOTO/VIDEO)
Teimur Radjabov defeats Levon Aronian at Skilling Open tournament
Ukrainian president retests negative for COVID-19
Turkey summons EU, Germany, Italy envoys after interception of Libya-bound commercial vessel
President Ilham Aliyev raises Azerbaijani flag in Aghdam city (PHOTO)
Georgian gov't administration head Natia Mezvrishvili resigns
EU promises 217 mln USD to debt relief for 29 poorest countries
It is time to rebuild, heal and revive Azerbaijani Fuzuli city - Algerian Ambassador (PHOTO)
President Ilham Aliyev and first lady Mehriban Aliyeva visit liberated from occupation Aghdam city (PHOTO)
Meeting with the leadership of the Interstate Television and Radio Company “Mir”
Turkmenistan participates to the 2020 Afghanistan Conference
Mine explosion in Karabakh injures Russian officer on search mission
Azerbaijan's Culture Ministry urges French cultural figures to be honest and impartial
Baku Metro, Almetcon LLC sign contract on installation of aluminum windows
Georgian Poti Free Industrial Zone talks about ongoing projects
Azerbaijan expects growth of pomegranate yield
Iranian Energy Exchange announces products to be on sale November 24
Azerbaijani First VP Mehriban Aliyeva shares footage from Aghdam (VIDEO)
Growth of monetary aggregates observed in 9M2020 - Central Bank of Azerbaijan
Iran preparing to use water reservoir on Araz River on border with Azerbaijan
Main source of self-financing for Tbilisi City Hall to be tax revenues
Azerbaijan to make amendments to e-mortgage & loan guarantee system
Lufthansa to resume flights to Iran
Azerbaijan investigating criminal case against Armenian ex-minister
CoE approves trilateral declaration to end all hostilities between Armenia and Azerbaijan
Goods stuck in Iran customs exceed 550,000 tons
Iran claims its COVID-19 death toll to decrease next month
Iran’s Bahar Azadi gold coin price starts to rise
Uzbek currency rates for November 23
Turkmen Ministry of Construction extends tender for construction of checkpoints
Iran reveals investments for Markazi Province
Azerbaijani consumers prefer to buy car on credit - expert
Kazakhstan to establish facilities around big plants in Kyzylorda region
Azerbaijan to initially organize educational tourism in liberated districts - state agency
Expert explains Iran's current limits with its oil, oil product exports, revenues
Iran-Afghanistan, Khaf-Herat railway to open soon
Kazakhstan decreases exports to Netherlands amid COVID-19
Georgian Tskali Margebeli company may increase prices of products
Uzbek commodity exchange trading floor opened in Ukraine
Innovative Technology Park in Uzbekistan starts developing robots production
Azerbaijani mortgage fund issues regular bond interests
Prices of old apartments decline in Georgia
Azerbaijan confirms 634 more COVID-19 recoveries
Turkmenistan's Turkmentehnogurlusyk opens tender for audit
Turkey announces commissioning date for logistics center in Kars province
Iranian tourists reduce visits to Turkey amid COVID-19 pandemic
Azerbaijani organizations to benefit from Visa's updated Fast Track program
Azerbaijan discloses revenues from passenger, cargo transportations via TRACECA
Toyota leads re-exported vehicle brand from Georgia
Iran to launch Bostanabad-Tabriz railway line
Kazakhstan increases imports from France despite COVID-19
Transportation of Caspian oil via Baku-Supsa pipeline increases
Tbilisi’s residential property sales marginally down in October
Kazakhstan and Turkmenistan holding negotiations on possible gas supplies
Kazakhstan to build desalination plants in Mangystau region
Iran to allocate funds for the rehabilitation of Anzali Wetland
Iran to distribute domestic COVID-19 vaccine by summer of 2021
Netanyahu met Saudi crown prince, Pompeo in Saudi Arabia on Sunday
Citizens of Russia and Ukraine will be able to return from Azerbaijan to their homeland
Lithuanian - Turkmen cooperation not affected by COVID-19
Rompetrol opens its flagship station in Georgian Borjomi
Lithuania interested in developing co-op with Turkmenistan in transport sector
Azerbaijan’s AzerGold to pay investor fee on placement of second tranche of bonds
Iran discloses number of licenses issued in Mazandaran Province
Fitch Ratings forecasts growing share of problem loans in Azerbaijan
Deputy minister talks tree-planting campaigns in liberated lands of Azerbaijan
Azerbaijan boosts import of cars in 10M2020
Azerbaijan strengthens preventive measures related to coronavirus in justice system – Justice Ministry
Death toll from coronavirus pandemic in Iran surpasses 45,000
Gold, copper ores output decreases in volume in Kazakhstan
Iran eyes to link Persian Gulf with Caspian Sea via railway
Kazakhstan's revenue from maritime cargo transport increases
Azerbaijan aims to put Armenian ex-defense minister on int'l wanted list
Azerbaijan establishes Nagorno-Karabakh Regional Department of Justice Ministry
Uzbek-Korean JV announces tender for transport services
Russian shipbuilding corporation plans to start construction of ships in Turkmenistan
Iran reveals forecast on employment for Lorestan province
Ambassador Manig: Germany will strengthen Council of Europe by focusing on initiatives enabling better protection of citizens (INTERVIEW)
Batch of new Hyundai buses delivered to Turkmenistan
Uzbek commodity exchange to buy tires via tender
All news