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OPEC to support $100 price at next meeting
OPEC oil ministers are expected to agree on action to support crude prices at around $100 a barrel when they meet in Vienna in mid December but will unlikely discussion new quotas, a key Saudi bank has said.The ministers of the 12-nation Organization or Petroleum Exporting Countries, meeting on December 14, will avoid talks on new quotas until Libyan production is fully restored and Saudi output is trimmed back following its unilateral increases after the last failed meeting in June, the Saudi American Bank group (SAMBA) said in its latest monthly bulletin. As such, the effectively irrelevant quotas agreed back in 2008 will remain in place, it said, noting that Saudi Arabia had boosted output above nine million barrels per day to offset disruption in conflict-hit Libya. That said, we expect the meeting will be less contentious than the last and that a consensus will emerge over the need to support prices at around $100 given members higher budget break-even prices. SAMBA said it believes Saudi will look to balance its output against increasing Libyan supply while monitoring prices carefully. Posted by: tipper 2011-12-04 |
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