BUSINESS: OPEC seems set to maintain status quo, page 1

In discussions before its main meetings, key members of the cartel OPEC are suggesting that they will not be raising the quota of the oil they produce. The reason given is that there is not a shortage, meerly higher prices and increasing guotas would have no real value in the market anyway.

story.news.yahoo.com[/ur l]
VIENNA (AFP) - On the eve of its meeting here, OPEC (news - web sites) appeared intent on sticking to the status quo as members suggested a purely symbolic increase of quotas would do nothing to end turmoil in the energy market.

Saudi Arabia, the powerbroker of the 11-member cartel, said a quota hike should make no impact as OPEC was pumping at least two million barrels more than the official ceiling of 26 million barrels per day (mbd) and the market was well supplied.

Venezuela, Libya and Qatar have followed its lead, all arguing against an adjustment.

"It is very difficult... raising the ceiling may affect the price too much," Libyan Oil Minister Fathi Hamed Ben Shatwan warned on Tuesday.

His Iranian counterpart, Bijan Namdar Zanganeh, said it "was not necessary to put more oil on the market because we have no shortage in the market."

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This decison does highlight our dependance on oil. Given that there is no shortage world wide as the members have said, why would they have any incentive to lower prices? Even Saudi Arabia has agreed with the cartel in regards to this. Despite this International Truck company has annunced the release of an "Extreem Pickup" with a gross vehicle weigh of 27000 pounds. One can only wonder what the fuel economy is on that beast? ITs time to conserve as well as find new oil.

Related News Links:
[url=http://www.opec.org/NewsInfo/WhoSetsCrudePrices/Crude_Oil_Prices.htm]www.opec.org
www.opec.org
www.opec.org
www.navistar.com

[edit on 9-15-2004 by Valhall]