Opec to maintain current production level
Posted: 06 February 2006
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The Organisation of Petroleum Exporting Countries (Opec) decided to maintain the current Opec-10 production level of 28.0 million bpd as agreed during its meeting in June 2005.
This decision, made during its139 extra-ordinary meeting in Vienna was due to the balance in market fundamentals after the organisation’s review of the oil market. Opec says market fundamentals have remained in balance since its last Meeting in Kuwait in December 2005, with comfortable stock levels.
Opec also observed the world economic performance continues to be resilient.
The conference noted that, although the market is well supplied with crude oil, and commercial oil stock levels in the OECD remain healthy, prices have continued to rise. This, however, is primarily a result of refining bottlenecks and other non-fundamental factors.
Opec says that forecasts for supply and demand in recent years have tended to underestimate the requirements for Opec oil, especially in the second quarter.
Recalling that Opec is committed to continuing to play its role in maintaining a supply level conducive to economic growth, the conference expressed its concern about the high degree of price volatility, and the impact this may have on the global economy, in particular for developing countries.
Next ordinary meeting will be held on 8 March in Vienna, Austria.
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