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OPEC may cut output because of over-supply: Kuwait
KUWAIT CITY - A cut in oil production may be necessary at OPEC’s meeting next month as over-supply may reach two million barrels per day (bpd) in the second quarter, the Kuwaiti energy minister said on Monday. “We believe the market is well-supplied and we believe the second quarter will be over-supplied ... with between 1-2 million bpd,” Sheikh Ahmad Fahd Al Sabah told reporters in parliament.
So much for the Chicken Littles on the Left (yes, you, Mr. Krugman) who keep saying that oil production has peaked ...
“We have to wait for our March meeting. If necessary and if prices will go back to be determined by supply and demand, we have to do our cut,” Sheikh Ahmad said. “But if prices continue as they are now ... we will continue to support stable prices for the future,” he said.

The oil price is being driven higher by factors other than supply and demand, the Kuwaiti minister said, adding that he believes current prices are reasonable. “I think that prices now, with the geopolitical problems and weather, are reasonable because everybody thought that, with these problems, the increase will be more,” he said.

Oil prices jumped higher on Monday after fresh unrest in Nigeria slashed output in the country, and as the market kept a close watch on talks in Moscow to resolve a standoff over Iran’s nuclear programme.
Posted by: Steve White 2006-02-21
http://www.rantburg.com/poparticle.php?ID=143311