OPEC Likely to Agree to Keep Output Target Unchanged

OPEC’s members are likely to decide to keep their output target for oil unchanged when they meet in December, Iran’s representative to the Organization of Petroleum Exporting Countries said.

Producers and consumers are satisfied with the current price level for crude, Iran’s Governor to OPEC Mohammad Ali Khatibi said, according to Shana, the Iranian Oil Ministry’s news website. “The situation is such that most OPEC members are expected to agree with maintaining the current level of oil production,” Khatibi said.

OPEC is responsible for 40 percent of global oil output, and the group’s 12 members are to meet Dec. 14 in Vienna to review output policy. Iran is OPEC’s second largest producer after Saudi Arabia. When the group last gathered on June 8, Iran and five other members rejected a Saudi proposal to raise output by 1.5 million barrels a day, and the meeting ended without agreement for the first time in at least 20 years.

The average price for OPEC’s main crude oil grades fell below $100 a barrel last week for the first time since Feb. 18, before rising back above that level on Oct. 6. The price for the so called OPEC basket of crudes advanced to $101.63 from $99.90 on Oct. 5, according to OPEC’s website. The basket price is calculated using one key export blend from each of the organization’s members and weighting each according to production.

Before last week, the OPEC price had exceeded $100 since the beginning of 2011. “Prices aren’t expected to fluctuate much,” Khatibi said.


Posted courtesy of Bloomberg News

Crude Oil Trades Near a Five Week High on Speculation Demand Is Increasing

Crude oil traded near a five week high on speculation energy demand will increase as the global economy recovers from its worst recession since World War II. Global consumption may increase by as much as 1.4 million barrels a day in the second half, Iran’s OPEC governor Mohammad Ali Khatibi said in an interview on the Shana Web site yesterday. Prices pared early gains as the dollar traded little changed after posting its sixth straight weekly increase against the euro, the longest streak since 2000.

“That growth story suggests that oil prices will continue to firm as the global economy recovers,” said Toby Hassall, research analyst with CWA Global Markets Pty in Sydney. “But that firming dollar, if it does continue, that will keep prices fairly well in check.” Crude oil for March delivery rose as much as 30 cents, or 0.4 percent, to $80.11 a barrel in after hours electronic trading on the New York Mercantile Exchange. It was at $80.06 at 7:55 a.m. in Singapore.

The contract, which expires today, rose 0.9 percent to $79.81 on Feb. 19, the highest settlement since Jan. 12. The more actively traded April contract rose 31 cents to $80.37 today. Oil prices climbed 7.7 percent last week, the biggest gain since October, as U.S. refiners lifted operating rates for a second week and the Federal Reserve increased its discount rate for the first time in three years amid signs of recovery in the nation’s economy.....Read the entire article.


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Iran Sees OPEC Maintaining Current Oil Output

Iran, the second largest exporter of the Organization of Petroleum Exporting Countries, predicted on Sunday the cartel will maintain current oil output at its meeting next week, despite producers being unhappy with the prevailing price of crude. "There is a feeling among OPEC oil ministers that the group wants to maintain current ouput levels," Mohammad Ali Khatibi, Iran's representative to OPEC, told AFP ahead of Wednesday's meeting of the group in Vienna. "I think it is unlikely we will see any noticeable change. Based on comments already made by OPEC ministers, the output ceiling will not change." OPEC, whose 12 members pump 40% of the world's oil, agreed in late 2008 to remove a massive 4.2 million barrels a day of output from the market in a bid to shore up crumbling prices......Read the entire article

Crude Oil Falls Below $68 on Speculation Global Supplies Ample

Crude oil dropped below $68 a barrel on speculation supplies are ample as the end of summer driving in the U.S. compounds already weak global demand. A report tomorrow will probably show consumer credit in the U.S., the world’s largest oil consumer, fell for a sixth month as banks restricted lending and rising unemployment damped borrowing. OPEC member states are unlikely to change output levels when they meet this week, Agence France-Presse reported, citing Iran’s representative to the group, Mohammad Ali Khatibi.“The trade is kind of anticipating a period of slack seasonal demand coming up, which I think is possibly going to keep the upside fairly limited,” said Toby Hassall, research analyst with Commodity Warrants Australia Pty in Sydney. “We’ll just have to see if the refineries start to scale back their runs”.....Read the entire article