OPEC Keeping Policy the Same Unless Others Move First

The Organization of Petroleum Exporting Countries will not change its policy at its upcoming meeting unless there is a cut by other producers first, said the former minister of energy from Qatar.

OPEC will meet next in June in Vienna a full seven months after making the decision to maintain its output levels to protect its market share.

Production by members who are non-OPEC, such as Mexico increased during February from the previous month. Output in the U.S. is forecast to be at a three decade high and supplies in Russia climbed to a high during January for post-Soviet Russia.

Unless producers that are non-OPEC agree collectively, OPEC will not change its policy said Abdullah bin Hamad al-Attiyah, who was the energy minister in Qatar between 1992 and 2011.

He also said OPEC should not hold an extraordinary meeting if it does not have a concrete decision. Brent crude, which is a benchmark for over half of the oil in the world, has fallen by 26% since the decision by OPEC in November 27.

The President of OPEC Diezani Alison-Madueke told an interviewer in February that she would request a meeting if the prices continued to decline. Ali Al-Naimi the Oil Minister of Saudi Arabia said last week while in Germany that he was unaware of plans for OPEC to hold a meeting prior to June 5.

A forecast by the Energy Information Administration says that output in the United States would increase to over 9.3 million barrels per day during 2015, which is the most since 1972.

In January, Russia produced over 10.7 million barrels per day and state controlled Petroleos Mexicanos in Mexico boosted its output per day to more than 2.33 million barrels during February from January’s daily output of 2.25 million barrels.

The prices of Brent had been increasing the past two to three weeks, but late last week and early this week has pulled back to less than $59 per barrel.

Leave a Reply

© 2006-2016 Mideast Time.