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Iraq, Angola See No Need for OPEC to Alter Crude Output Target

Venezuela Crude Oil
A worker walks at crude oil plant near San Diego de Cabrutitas, Venezuela. OPEC’s members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. Photographer: Diego Giudice/Bloomberg

Nov. 10 (Bloomberg) -- OPEC, which produces about 40 percent of the world’s oil, will probably keep its crude oil output target unchanged at its next meeting, according to oil ministers from member states Iraq and Angola.

Iraqi Oil Minister Abdul Kareem al-Luaibi and Angola’s Jose Maria De Vasconcelos said they don’t see the need for the Organization of Petroleum Exporting Countries to alter its collective production target of 30 million barrels a day because current oil-price levels are satisfactory.

The “situation is good” as long as oil prices are above $100 per barrel, De Vasconcelos said in an interview in Abu Dhabi today. He said they are monitoring developments in the market.

OPEC, which set a collective production target of 30 million barrels a day in December 2011, will next meet to review targets on Dec. 4 in Vienna. OPEC’s members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

Iraq, OPEC’s second-largest producer, sees a stable world market with demand looking good, according to al-Luaibi, who said he is “happy” with prices at current levels. Brent futures, the benchmark for more than half the world’s crude, closed at $105.12 in London trading on Nov. 8.

“Keeping the current production ceiling is a wise decision to take as supply from outside of OPEC is expected to grow next year on higher output from North American shale deposits,” Said al-Shaikh, the chief economist of National Commercial Bank, Saudi Arabia’s largest lender by asset, said today by phone from Jeddah.

‘Reasonable Target’

“Global demand is not expected to be very high, so 30 million barrels seems a very reasonable target,” said al-Shaikh, who is a member of the energy committee at the Kingdom’s Shura Council, a body that advises the government on setting its policies.

The need for crude from OPEC will fall by 1.1 million barrels a day to 29.2 million barrels a day between 2013 and 2018 as North America may triple output of tight oil from shale formations, OPEC said in its annual World Oil Outlook on Nov. 7.

Kuwait also expects the group to keep its crude oil output target unchanged at its next meeting, Reuters reported yesterday, citing the country’s oil minister, Mustafa al-Shemali.

To contact the reporters on this story: Nayla Razzouk in Dubai at nrazzouk2@bloomberg.net; Maher Chmaytelli in Dubai at mchmaytelli@bloomberg.net; Wael Mahdi in Manama at wmahdi@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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