OPEC Delegate - " I Don't See Any Increase In Production Needed" - Gulf Times

[hatrack]

LONDON: Opec does not need to raise oil output at a meeting on September 11, despite calls from consumers for more crude to lower prices from near a record high, an Opec delegate said yesterday.

The comments are the latest indication that Opec, source of more than a third of the world’s oil, is holding firm in the face of calls from the US and the International Energy Agency for higher oil output.

“As the market stands today, I don’t see any increase in production needed,” said the delegate, who declined to be identified by name. “We believe the market is well supplied.”

The delegate said he expected prices to ease further from the record high of $78.77 a barrel reached on August 1 as factors unrelated to supply and demand, such as speculation and “consumer anxieties”, had pushed prices up. “We see the price easing in coming days. I don’t see any reason prices should be at this level.”

EDIT

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=165731&version=1&template_id=48&parent_id=28

[Canuckistanian]

1. Why am I extremely troubled by that statement?

Could it be that maximum production has already been reached?

[phantom power]

2. Yes, I think it's just putting on a brave face for the audience.

"Lieutenant, fetch me my brown trousers!"

What I wonder is, how long can they pull this kabuki theater act off? How high will prices go before the "we're happy with current prices" story no longer convinces the audience?

[Javaman]

3. aka we can't increase output because we have peaked. nt

[Delphinus]

4. Agreed. n/t

[GliderGuider]

5. (Cough)bullshit(Cough)

Saudi output is down by at least 10% from their glory days of 2005. They're staring into the abyss and don't want to spook the horses. Funny how they were involved in the last Sept. 11 "event" as well, and probably for the same reason.

[IDemo]

6. Prices at $50 to $55 a barrel are just about right for the Saudis,

according to Saudi energy officials, not too high to hurt the global economy, not too low to hurt their own economy.

Currently, they are at $70.80/barrel

My, how things have changed since that was published last January...