A leading Kuwaiti official has confirmed his country's support support an OPEC production hike of around one million barrels per day (bpd).
The official KUNA news agency today reports Acting oil minister Sheikh Ahmed Fahad saying an increase of 500,000 bpd was reasonable but that he could support 1,000,000 if required.
But he pointed out that Kuwait itself could not increase production much until Rawdhteen oil field had resumed operations following repairs to damage caused by a major fire there last year.
Expectations are high that OPEC, Organization of Petroleum Exporting Countries, will substantially boost production amid a general strike in major oil producer, Venezuela, and fears of war in Iraq. Both events are sharply driving up oil prices.
Sheikh Ahmed said that talks were continuing among OPEC members to agree to adequately supply the market.
OPEC Secretary General Alvaro Silva-Calderon was cautious over an OPEC plan to hike its oil output at an extraordinary meeting in Vienna on Sunday, according to the cartel's OPECNA news agency in Vienna.
"Any larger increase or cut in output (than 500,000 barrels a day) has to be carefully evaluated within the prevailing circumstances," Mr Silva-Calderon told OPECNA.
OPEC agreed to a price band mechanism in March 2000 under which the cartel would raise output by 500,000 barrels per day if prices remain above the range of $22 to $28 for more than 20 consecutive trading days.
On Tuesday the price of OPEC's reference basket of seven crude oils remained above $28 for the 14th consecutive trading day. If prices continue at these levels, the 20th day will fall on January 15th.
AFP