OPEC Secretary General Mr Alvaro Silva-Calderon remained cautious today over the Organisation of Petroleum Exporting Countries' plan to hike its oil output at an extraordinary meeting on Sunday.
"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 the cartel's OPECNA news agency in Vienna.
In March 2000, OPEC agreed to a price band mechanism 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.
The mechanism also sets out that OPEC would cut its output by the same amount if prices fell below $22 for 10 consecutive days.
Yesterday 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.
OPEC looks set to substantially hike its production at its extraordinary ministerial meeting in Vienna on Sunday, to respond to growing demand sparked by the general strike in Venezuela and the threat of war in Iraq.
AFP