Arab OPEC Ministers to Meet as Oil Price Tops $91
Source: Reuters (12/23/10)
"OPEC elected to make no change to output policy. . ."
A full conference of the Organization of the Petroleum Exporting Countries earlier this month elected to make no change to an output policy it has stuck to since December 2008.
Since then oil has maintained a more than 30% rally from this year's low struck in May and this week scaled a high of $91.63, the steepest in two years.
The Organization of Arab Exporting Countries (OAPEC) brings together the Arab members of OPEC including top exporter Saudi Arabia, which has traditionally been viewed as a price moderate, as well as non-OPEC countries Tunisia, Egypt, Syria and Bahrain.
The Organization of Arab Exporting Countries (OAPEC) brings together the Arab members of OPEC, including top exporter Saudi Arabia, which has traditionally been viewed as a price moderate.
Ministers began arriving on Thursday in time for Saturday's meeting when they will not take any formal decision on output, but can still discuss production and price.
"About $100 would be a fair price for the time being," Libya's most senior oil official Shokri Ghanem told Reuters.
Analysts have said the likelihood is the strong price would encourage OPEC to produce more oil, although first of all by informally pumping in excess of agreed limits rather than through a policy change.
"I think we are going to see more production because oil is above $90," said Patrick Armstrong of London-based Armstrong Investment Managers.
"The market could easily go for $100 because we're starting to see more commodities allocation to preserve the real value of investment portfolios, but I don't think we're going to see scenarios for spikes."