Decision on Increase of Oil Production Volumes not be Taken at OPEC Meeting: Alfa Bank Analyst
Azerbaijan, Baku / corr Trend A.Badalova / A decision on increase of volume of oil products will not be taken at the next meeting of the OPEC members, Andrey Fedorov, an analyst of Alfa Bank, said.
The next 145th regular session of the OPEC will be held in Vienna. The meeting will resolve an issue on the necessity of increasing quotas for oil production. At the beginning of August the International Energy Agency (IEA) called on OPEC to make a decision at the OPEC on the increase of oil production volumes.
OPEC countries Algeria, Angola, Venezuela, Indonesia, Iraq, Iran, Kuwait, Libya, Nigeria, Qatar, the United Arab Emirates and Saudi Arabia.
Oil prices have stabilized at the level of $60 per barrel and it suits all, first of all OPEC member-countries.
"If proposals begin increasing suddenly and the oil reserves of refineries begin growing it will indeed lead to drop in prices. None of OPEC countries are interested in it," the analyst said.
As of 10 September, price o OPEC basket was $72.34 (+0.33) per barrel. The figure was fixed at the highest point after 1 August when the 'basket' price comprised $73.04 per barrel. The historical maximum for the OPEC basket is the price set at $73.67 per barrel registered on 20 July 2007.
Countries not participating in OPEC, particularly, Russia, which stated on the strategy directed at increase of production, might be interested in the increase of volumes, as well as other countries such Kazakhstan.
Oil reserves will indeed reduce, but a decision on increase of their volume will be taken later when commercial reserves will considerably drop," the analyst added.