Opec set to consider real output increase

Opec could decide next week on a real increase in oil output to go further in its efforts to ease prices than just formalising…

Opec could decide next week on a real increase in oil output to go further in its efforts to ease prices than just formalising production already above official quotas, cartel ministers said today.

Opec President Sheikh Ahmad al-Fahd al-Sabah and Nigerian energy adviser Edmund Daukoru were speaking ahead of a meeting with EU officials, who are expected to call for an increase in production at Opec's June 15th Vienna meeting.

Asked about the possibility of a real increase in output for the third quarter, Sheikh Ahmad said: "Yes, we have to discuss it next week."

Mr Daukoru agreed some real extra supply could be on the agenda but said the extent of Opec action would depend on price movements.

READ MORE

"We will do what we can to moderate prices," Mr Daukoru said. "We are already producing slightly beyond the quota. . . . What we will be looking at will be whether we need to formally announce a further production increase.

"My own feeling is that we probably need to make a gesture. That gesture could be to increase actual production or simply formalise what we are already doing," he said.

Oil prices, up 49 cents a barrel at $53.03 for US crude on Thursday, have held strong despite Opec raising supplies to capacity for most members.