20091221
LUANDA (Reuters) - OPEC producers are set to leave output limits unchanged at a meeting on Tuesday, officials from the cartel said, but look likely to call for improved compliance with existing curbs.
"For this meeting -- no change," OPEC Secretary-General Abdullah al-Badri told reporters. "There is consensus that there is no change."
"If you look at the price, it is very comfortable. If you look at fundamentals, inventories they are on the high side. We have to work to bring them down to reasonable levels."
The Organization of the Petroleum Exporting Countries has not needed to alter its self-imposed output quotas since slashing supplies late last year to reverse a price crash as the world economy slid into recession.
"If the price had stayed below $70 it might have put the wind up them. But it didn't go there, it is back in the $70s so they will leave well alone," said Neil Atkinson, senior analyst KBC Market Services.
Benchmark U.S. crude traded at $73.50 a barrel on Monday, having slipped briefly below $70 last week.
OPEC has no official price target but several countries, including leading producer Saudi Arabia, have called $75 a fair price for both consumers and producers.
The only issue for ministers is likely to be the degree of adherence with existing supply curbs, which has weakened in recent months, allowing more oil onto the market.
|