OPEC not to change oil quota: international experts
Azerbaijan, Baku, August 31 / Trend A. Badalova /
The current prices for oil on the world markets are at a satisfactory level for OPEC not to take any decisions to change production quotas, international experts said.
"I think that OPEC is unlikely to opt for an oil quota change at a meeting in September," Expert at the Oxford Institute for Energy, Shamil Yenikeyeff, told Trend via E-mail on August 31.
Members of the cartel will discuss production levels at OPEC meeting to be held in Vienna on September 9. Countries-members of the cartel, in particular, Iraq and Venezuela said last week that there is no necessity to increase crude oil production due to an excessive level of oil reserves now.
Expert said that the current price levels make oil produces feel quite comfortable.
As long as oil prices remain within the $60-$70 per barrel, OPEC member-countries will not adopt any decisions with regards to their oil output, Yenikeyeff said.
As a result of auction at the New York Stock Exchange on August 28, price of a futures contract for U.S. WTI crude for October delivery increased $ 0.25 up to $72.74 per barrel. The October contract for North Sea oil brand Brent rose by $0.28 up to $72.79 per barrel on the London Stock Exchange.
I think OPEC will adopt a sort of "wait and see" approach, which is the only rational one in a very uncertain time, director of the department on power engineering of Italian liberal research center of Bruno Leoni, Carlo Stagnaro, said.
I don't expect the next OPEC meeting will deliver further, credible productions cuts, Stagnaro said.
"On the one hand oil prices are relatively high (perhaps because they may include some speculative component)," Stagnaro told trend Capital via e-mail on August 31.
On the other hand, OPEC member states, and most notably Saudi Arabia, have already made a very strong effort in enforcing the productions cuts that had been previously decided, Stagnaro said.
Yenikeyeff said that the speed of the economic recovery after the global financial crisis will shape oil prices as growing global oil demand could push prices up slightly.
According to the International Energy Agency, OPEC oil production in July decreased 100,000 barrels to 28.64 million barrels per day.
The U.S. State Energy Information Administration (EIA) expects the average price of U.S. crude WTI to hit $70 per barrel in the fourth quarter of 2009. According to EIA, The average price of WTI for 2009, will be $60 per barrel.
Do you have any feedback? Contact our journalist at: [email protected]