OPEC: No boost in oil output
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Friday, 01 February 2008 |
 VIENNA, Austria - Shrugging off calls to pump more oil, OPEC ministers
said Friday that output levels will not be increased out of fear that a
softening global economy will translate into weakened demand. Any
decision by the Organization of Petroleum Exporting Countries to
produce more would have acted as a shot in the arm for countries
struggling with weak growth, the fallout from the U.S. subprime crisis
and negative economic factors. "In view of the current situation, coupled with the projected economic
slowdown, the conference decided that current production is sufficient
to meet ... demand for the first quarter of the year," an OPEC
statement read.
Friday's special meeting was set in December as prices approached $100
per barrel. The 13-nation group considered increasing output to calm
volatile markets.
With oil prices high but steady, the focus has shifted to the
sputtering U.S. economy with its implications for lessened demand. That
and a continued weak dollar, which hurts the purchasing power of OPEC
members, has swung sentiment behind maintaining the current output.
OPEC nations argue that market speculation and geopolitical factors
have become the key drivers of oil prices. They assert that increasing
production beyond the present level of nearly 30 million barrels a day
for the 12 members under quotas would be counterproductive because
there is enough crude to meet world needs.
Source: George Jahn, Associated Press Writer
1/02/08
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