Oil supplies sufficient
The president of the Organisation of Petroleum Exporting Countries said Sunday the oil cartel will seek at a meeting this week to maintain market stability, but that current output was sufficient.
"Any decision taken by Opec will take into account the stability of world markets," said Mohammad bin Dhaen al-Hamli, who is energy minister of the United Arab Emirates.
But Hamli, who spoke before leaving for Vienna where the cartel meets on Tuesday, also said that "current supplies to the petroleum market are sufficient," the official WAM news agency reported.
"Opec is committed to provide sufficient supplies," he added.
Hamli said that Opec members are currently producing an estimated 30 million barrels per day (bpd) and have a spare output capacity of about four million bpd expected to last until the end of the year.
The 12-nation club is under pressure to raise output to dampen crude prices.
Last Thursday, oil prices in New York tested their record level of 78.77 dollars per barrel, reached on August 1, while in London a barrel of Brent was trading at about 75 dollars.
At its last regular meeting in March, Opec decided to keep its official production quota at 25.8 million bpd.
Hamli said Opec members believe the shortage of refining capacity in consumer countries is one of the reasons behind the rise in crude prices.
Rich countries are clamouring for more supply ahead of the peak winter demand period in the Northern Hemisphere, with high oil prices an added risk for the world economy in addition to financial market turbulence and a US housing crisis.
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