Monday, September 27, 2010

Kuwait Worried About OPEC Members' Output Quota Compliance

Kuwait's oil minister Monday said the country is worried about compliance with production quotas by members of the Organization of Petroleum Exporting Countries and will discuss the matter at the group's forthcoming meeting. Sheikh Ahmad Abdullah Al-Sabah also said the 12 member OPEC group is unlikely to change production quotas at the next meeting in Vienna, scheduled for Oct. 14, as current oil prices are "comfortable".

Al-Sabah told reporters he isn't concerned about global crude oil demand, but is worried about OPEC members conforming to production quotas, saying there have been "slippages here and there". "Compliance with their (OPEC) quotas is very important," said the Kuwaiti minister, who is scheduled to meet his Indian counterpart during his three day visit to India.

Al-Sabah's comments come as some member states produce far more than the amount allotted to them under OPEC's production quota system. Higher production by any member could lead to oversupply in the market and hurt global prices. Last week, the oil minister of Angola, an OPEC member, said the country is still producing 1.9 million barrels a day of oil, according to the Angola Press news agency. The southern African nation says its quota is 1.656 million barrels a day, but data from OPEC's general secretariat show Angola's allocation is 1.517 million barrels a day.....Read the entire article.


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