Vienna (AFP) – The Organization of Petroleum Exporting Countries should maintain (OPEC) its ceiling unchanged at its ministerial meeting, despite the supply glut beating down prices and the prospect of a return of the Iranian supply on the markets.
Ministers of the twelve OPEC countries began discussions on Friday in Vienna to cartel office to decide on their production target for the next six months.
Saudi Arabia Oil Minister, leader of OPEC, Ali al Nuaimi remains very optimistic about the market outlook and reiterated that “conditions improve” and that ” hope they continue to improve. “
” The demand has increased and oil supply diminishes, “he said.
Ali al-Nuaimi has also denied considering retiring after the meeting. “It’s a lie nest,” said he said.
The optimism of Saudi Arabia is not shared by all members of the cartel, however, and Iran Angola have again expressed their desire to see the price rise.
“The current level of oil prices is not good for many members of OPEC,” said the Iranian Oil Minister Bijan Namdar Zangeneh.
He said that these prices were not good in the medium and long terms for producers and for consumers, since the lack of investment will “ask problems. “
” Most OPEC members believe that oil prices at $ 75 is fair, “said Mr. Zanganeh.
Angola might otherwise be forced to abandon certain projects in the deep offshore, more expensive, if oil prices do not go up to about $ 80 a barrel.
But the Energy Minister of Angola, José Maria Botelho, is realistic and do not think it will be easy to achieve this level
The market remains indeed oversupplied. Russia, the world’s largest crude producer, aims to maintain production, OPEC exceeding its ceiling now, with production to 31.21 million bpd in April and the US crude reserves are at record levels.
“We have had two years delay in the assessment (impact) shale oil (the United States). It should not have come as a shock, and now it is a reality, and we must take it into consideration, “said Adel Abdel Mahdi, Iraqi Oil Minister.
Also, if the International sanctions against Iran are lifted in June, the country could produce a million barrels a day in additional six months, according to the Iranian Oil Minister.
“It is clear that it is our right to return to the market and I asked OPEC members to consider the return of Iran, “said Mr. Zanganeh.
At its last meeting the cartel had kept its production ceiling unchanged at 30 million barrels per day (bpd), with the objective to contain the production of countries outside OPEC and stimulate demand. The cartel of the ceiling is fixed at that level for more than three years.
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