By DPA
Vienna : The Organisation of Petroleum Exporting Countries (OPEC) agreed at its regular autumn meeting to lift its output quota by 500,000 barrels per day with effect from Nov 1, OPEC spokesman Omar Ibrahim said.
Speaking to reporters Tuesday, OPEC’s Secretary General Abdullah al-Badri emphasised: “We hope that this decision will calm down the market.”
OPEC decided on the increase because it wanted to “send a signal”, al-Badri said. The cartel remained “concerned” over the current high oil prices and, in particular, the situation on the financial markets.
“We are concerned, but what we see, is not really clear,” al-Badri said.
The group’s 12 oil ministers agreed in lengthy deliberations to accede to demands to increase their production in view of recent price developments and the coming winter season.
Most cartel members including Algeria, Libya and Venezuela had ruled out a production increase ahead of the meeting.
Conference President Mohamed Bin Dhaen al-Hamli of the United Arab Emirates in his opening address had also still insisted that there was no oil shortage on the market.
“We can say, without any doubt, that the present price levels are not the result of a shortage of crude.”
However silence by Saudi Arabia, OPEC’s largest oil producer, on the issue had fuelled rumours of an output increase. Several OPEC members had expressed concern that a production increase amid financial turmoil might lead to recession and reduced demand.
Oil prices had risen ahead of the meeting. OPEC crudes rose by 33 cent to $72.34, while the US oil price of the reference brand West Texas Intermediate (WTI) rose to $77.86 in Asian trading. The price increase of 27 percent this year is an increasing burden to oil consuming nations, analysts said.
Also at the Tuesday meeting, Algerian Energy Minister Chakib Khelil was elected new president of the group as the successor to al-Hamli.