OPEC supply policy unchanged
By Amena Bakr and Alex Lawler |
October 15, 2010, Friday
|
Print Edition
Print Edition
OPEC agreed yesterday to hold intact a supply policy that has served it well for nearly two years and set aside concern a weak dollar would drive the oil price too high for a fragile world economy.
Ecuador, which holds the rotating presidency of the Organization of the Petroleum Exporting Countries, confirmed the no-change decision and said the group's next conference would be held in Quito on December 11.
Earlier a delegate told Reuters the ministers had been "100 percent" in agreement there was no need to change policy.
Oil prices did not react to the widely-expected OPEC news, but they held firm at close to US$84 a barrel, drawing support from a weak dollar, which has stoked buying across the commodities asset class.
The market has climbed above the US$70-US$80 price range, which top exporter Saudi Arabia has said is ideal for producers and consumers, but speaking just before yesterday's meeting its oil minister said the kingdom was still happy with the crude market for now.
"The biggest challenge we have is to keep the oil market as it is today," Saudi oil minister Ali al-Naimi told reporters.
He declined to be drawn on a price level that might endanger economic recovery, but said producers were concerned about a possible slide back into recession.
"I hope we don't have a double dip. Everybody is working very hard to avoid it."
International benchmark United States crude has this month risen above Naimi's favored range as heightened hope of more stimulus for the US, the world's biggest economy and biggest oil user, has weakened the dollar.
The dollar yesterday fell to its lowest this year against a basket of currencies, making dollar-denominated commodities relatively cheap for holders of other currencies.
Ecuador, which holds the rotating presidency of the Organization of the Petroleum Exporting Countries, confirmed the no-change decision and said the group's next conference would be held in Quito on December 11.
Earlier a delegate told Reuters the ministers had been "100 percent" in agreement there was no need to change policy.
Oil prices did not react to the widely-expected OPEC news, but they held firm at close to US$84 a barrel, drawing support from a weak dollar, which has stoked buying across the commodities asset class.
The market has climbed above the US$70-US$80 price range, which top exporter Saudi Arabia has said is ideal for producers and consumers, but speaking just before yesterday's meeting its oil minister said the kingdom was still happy with the crude market for now.
"The biggest challenge we have is to keep the oil market as it is today," Saudi oil minister Ali al-Naimi told reporters.
He declined to be drawn on a price level that might endanger economic recovery, but said producers were concerned about a possible slide back into recession.
"I hope we don't have a double dip. Everybody is working very hard to avoid it."
International benchmark United States crude has this month risen above Naimi's favored range as heightened hope of more stimulus for the US, the world's biggest economy and biggest oil user, has weakened the dollar.
The dollar yesterday fell to its lowest this year against a basket of currencies, making dollar-denominated commodities relatively cheap for holders of other currencies.
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