Monday, September 11, 2006

Opec tipped to keep output stable

Oil production group Opec is tipped to maintain its output quotas at current levels at a meeting on Monday, even as crude oil hits a five-month low.
Countries in the 11-nation Opec group are expected to stick to the existing target of 28 million barrels a day.
But falling prices - which hit below $67 on Friday - have made the group consider changing their stance.
"It is time to see whether we need a good, fresh outlook," said Opec president Edmund Daukoru of Nigeria.
Meanwhile, Qatar's oil minister Abdullah bin Hamad al-Attiyah said while not expecting production to be cut, he added that Opec members would not rule out doing so "if we feel the market needs a cut".
Despite recent events that have reduced production - from BP's partially shutting down its Prudhoe Bay field to Iraq and Nigeria seeing supplies disrupted due to unrest - global supplies are still strong.
Opec produces about 40% of world exports of oil.

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