OPEC set to leave output quotas unchanged at May 31st sitting

By bne IntelliNews May 30, 2013

The 12-nation OPEC oil cartel will likely maintain its 30mn-bpd oil production target on hold at its Vienna meeting on Friday, May 31, despite easing crude oil prices, amid a forecast weak global oil demand growth. OPEC has left its output target unchanged since January 2012. The crude oil prices currently hovers around USD 101 a barrel, remaining above the implicit benchmark price of USD 100 per barrel. The latter is seen suitable by oil producers led by Saudi Arabia, the world's single largest oil producer, and OPEC’s main powerhouse.

Iran, which has traditionally led the hawkish camp in OPEC calling for lower output, is facing an EU embargo on its oil exports. Saudi Arabia is also working with other OPEC members to reduce crude oil prices. Both rival countries and their OPEC allies will thus implicitly seek to keep the status-quo intact.

Weaker-than-expected consumption in Europe and Japan made OPEC cut its forecast for world oil demand growth in 2013 to 800,000 bpd from the previous 840,000, OPEC said in its April report. The bulk of the expected oil demand increase will originate from China with 400,000 bpd. 

Related Articles

UAE investor to develop $500mn agri-food group in Romania

The Al Dahra Group of the United Arab Emirates (UAE) wants to purchase nearly 60,000 hectares of agricultural land along the Danube River, develop a logistics company including water and road ... more

UAE to buy major stakes in Kazakh special economic zones

The United Arab Emirates’ (UAE’s) global port operator Dubai Ports World on March 24 signed two framework agreements to acquire stakes in Kazakhstan’s two Special Economic ... more

Survival of Iran nuclear deal appears far less likely under US Secretary of State Mike Pompeo

The odds on the Trump administration attempting to kill the Iran nuclear deal substantially shortened on March 13 with the firing-by-tweet of US Secretary of State Rex Tillerson and his replacement ... more