Organisation of Petroleum Exporting Countries (OPEC), which accounts for 40% of global supply, will meet on 11-Dec-2010 to consider raising production quotas (Bloomberg, 08-Dec-2010). OPEC is not expected to raise production quotas despite oil's rally to a more than two-year-high.New York crude futures climbed above USD90/barrel for the first time in 26 months on 07-Dec-2010, exceeding the USD70-90 range previously described by Saudi Arabian Oil Minister Ali al-Naimi as "comfortable". Ministers from Angola, Venezuela and Libya have stated the group will probably repeat its 24.845 million barrel per day target. Iran, Venezuela and Libya have stated they would accept prices as high as USD100, while OPEC Secretary General ABdalla El-Badri stated the group would not necessarily increase production unless there is a need for more oil. OPEC has not altered quotas at any of its six meetings since Dec-2008, when the group announced record supply cuts that have left OPEC with around 6 million barrels a day of spare capacity.
9-Dec-2010 7:26 AM