SAN FRANCISCO (AFP) - Before the formal meeting of the Organization of Petroleum Exporting Countries Wednesday, OPEC members began preparing to announce the decision to raise oil production quotas.
This is a change from last week, when prospects appeared split decision.
The Committee recommended an increase in OPEC production, according to the Agency for Dow Jones. Gathered delegations from Algeria, Kuwait, Nigeria and the OPEC Secretariat in Vienna on Tuesday for a meeting of the Sub-Committee for monitoring and by a ministerial summit on Wednesday.
However, uncertainty continued to plague the oil market Tuesday, sending crude futures prices in New York. I read about the work in the crude oil.
"OPEC faces major obstacles in this meeting," said James Williams, an economist at WTRG energy economy. It needs to decide by how much to increase production and how to "increase the divide" between members, but because of Saudi Arabia, Kuwait, United Arab Emirates in capacity.
"These members do not call for an increase are those who can not increase production," said Williams.
He said that all but Libya's oil-producing above their quotas. Usually this problem is resolved "to reset the current production quotas as well as the proportion of some", but only Saudi Arabia, Kuwait and the UAE have any additional capacity, and increase the quotas as well as the rest would be meaningless. Read what about the OPEC meeting will not be routine.
Saudi Arabia plans to increase oil production sharply in June, regardless of what the policy in the OPEC at a meeting on Wednesday, according to a report from Reuters on Tuesday.
A senior official in the industry familiar with the Gulf oil policy, Saudi Arabia expects the country to increase production to more than 500,000 barrels per day in June, Reuters.
Earlier in the day, said Kuwaiti Oil Minister Mohamed Al said he expected OPEC to make a decision on increasing production, pointing to the need for more supply in the market to meet strong demand, according to various press reports.
But he said Iran's OPEC governor Mohammad Ali Khatibi on Saturday in an interview with Dow Jones that while the expected increase in production to be the most likely outcome, and producers should be careful before you put more oil on the market, which refers to it as "balanced." Read more about Khatibi's comments.
Saudi officials and publicize a plan to increase OPEC production by at least 1 million barrels per day and up to 1.5 million in the Group meeting Wednesday, OPEC delegates said. I read about the Iraqi opposition to rise.
Time for change?Any change official output quotas to be the first in more than two years. OPEC left on the quota of 11 members of OPEC unchanged at 24.845 million barrels per day since January 2009.
Members, however, oil production was much higher than the official target.
And pumped 11 Members of OPEC quota commitment to an average 26.18 million barrels per day in April / April - more than 1.3 million above target, according to a Platts survey of OPEC and oil industry officials and analysts issued on May 9.
"If OPEC recognizes only that the quota to 1.4 million barrels per day in the framework of what is actually being produced, and passes it on as 'increase,' then this will not lead to any barrels of additional bring them on" Meir, Edward, senior analyst said goods in the MF Global in a note to clients.
"Such a situation may be to some extent it can be said based on the market," he said. "However, prices will drop faster if the organization includes a proposal for the possible development of Saudi Arabia through the barrel of the additional surplus of more than 1400000 to come out already more than the official quota."
Stood OPEC basket of crude oil at 12 $ 110.11 on Monday, down from $ 111.20 on May 31. And futures prices fell below $ 99 a barrel, but still 8% over the year up until now.
And will include the opening session of the OPEC meeting begins at 10 am Wednesday in Vienna, conducted a closed meeting with at 11 am, followed by a press conference and announce the decision at 4 pm local time.
This is a change from last week, when prospects appeared split decision.
The Committee recommended an increase in OPEC production, according to the Agency for Dow Jones. Gathered delegations from Algeria, Kuwait, Nigeria and the OPEC Secretariat in Vienna on Tuesday for a meeting of the Sub-Committee for monitoring and by a ministerial summit on Wednesday.
However, uncertainty continued to plague the oil market Tuesday, sending crude futures prices in New York. I read about the work in the crude oil.
"OPEC faces major obstacles in this meeting," said James Williams, an economist at WTRG energy economy. It needs to decide by how much to increase production and how to "increase the divide" between members, but because of Saudi Arabia, Kuwait, United Arab Emirates in capacity.
"These members do not call for an increase are those who can not increase production," said Williams.
He said that all but Libya's oil-producing above their quotas. Usually this problem is resolved "to reset the current production quotas as well as the proportion of some", but only Saudi Arabia, Kuwait and the UAE have any additional capacity, and increase the quotas as well as the rest would be meaningless. Read what about the OPEC meeting will not be routine.
Saudi Arabia plans to increase oil production sharply in June, regardless of what the policy in the OPEC at a meeting on Wednesday, according to a report from Reuters on Tuesday.
A senior official in the industry familiar with the Gulf oil policy, Saudi Arabia expects the country to increase production to more than 500,000 barrels per day in June, Reuters.
Earlier in the day, said Kuwaiti Oil Minister Mohamed Al said he expected OPEC to make a decision on increasing production, pointing to the need for more supply in the market to meet strong demand, according to various press reports.
But he said Iran's OPEC governor Mohammad Ali Khatibi on Saturday in an interview with Dow Jones that while the expected increase in production to be the most likely outcome, and producers should be careful before you put more oil on the market, which refers to it as "balanced." Read more about Khatibi's comments.
Saudi officials and publicize a plan to increase OPEC production by at least 1 million barrels per day and up to 1.5 million in the Group meeting Wednesday, OPEC delegates said. I read about the Iraqi opposition to rise.
Time for change?Any change official output quotas to be the first in more than two years. OPEC left on the quota of 11 members of OPEC unchanged at 24.845 million barrels per day since January 2009.
Members, however, oil production was much higher than the official target.
And pumped 11 Members of OPEC quota commitment to an average 26.18 million barrels per day in April / April - more than 1.3 million above target, according to a Platts survey of OPEC and oil industry officials and analysts issued on May 9.
"If OPEC recognizes only that the quota to 1.4 million barrels per day in the framework of what is actually being produced, and passes it on as 'increase,' then this will not lead to any barrels of additional bring them on" Meir, Edward, senior analyst said goods in the MF Global in a note to clients.
"Such a situation may be to some extent it can be said based on the market," he said. "However, prices will drop faster if the organization includes a proposal for the possible development of Saudi Arabia through the barrel of the additional surplus of more than 1400000 to come out already more than the official quota."
Stood OPEC basket of crude oil at 12 $ 110.11 on Monday, down from $ 111.20 on May 31. And futures prices fell below $ 99 a barrel, but still 8% over the year up until now.
And will include the opening session of the OPEC meeting begins at 10 am Wednesday in Vienna, conducted a closed meeting with at 11 am, followed by a press conference and announce the decision at 4 pm local time.
