20091222
aljazeera



Members of the oil producers' body Opec have agreed to maintain their production restrictions in a bid to maintain oil prices.

Ministers from the 12-member Organisation of Petroleum Exporting Countries (Opec) announced their decision at a meeting in Luanda, Angola's capital, on Tuesday.

The group instituted its emergency quotas a year ago after oil prices tumbled amid the global economic crisis.

Oil prices have risen from a low of $40 a barrel to just short of $74 a barrel since the group imposed its restrictions.

David Strahan, a London-based energy strategist, said that there was no real justice for any move other than maintaining the status quo.

"Opec could hardly cut production at the moment as it is enjoying quite substantial prices, oddly high prices I think given the fundamentals of the market at the very minute," he told Al Jazeera.

"$70 to $80 a barrel, that's great for them, state budgets are balanced at that price, they are making quite a bit of money.

"There was also no incentive for them to increase production and the economic recovery, such as it is, seems able to survive these current prices."

Low demand

But Manouchehr Takin, a senior analyst at the Centre for Global Energy Studies, said the world economy was still struggling and likely downward pressure on prices could lead to more restrictions.

"It could be, if this trend of low demand continues towards the end of 2010, there could be great [downward] pressure and the price will come down to maybe $60 or so - and before that time Opec might have to cut production [to raise prices]," he told Al Jazeera.