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

EBRD prepares to welcome Lebanon into fold

The EBRD is set to welcome its 66th member country and the fifth from the southern and eastern Mediterranean (SEMED) region once the Lebanese government finalises the last steps of the joining ... more

Russia and Saudi Arabia to launch joint projects worth $3bn in 2017

Russia and Saudi Arabia will launch joint projects worth $3bn by the end of 2017, the speaker of Russia’s Federation Council Valentina Matviyenko said at talks with members of the Russian-Saudi ... more

Egypt’s President El Sisi to announce state of emergency after church bombings

Egypt’s President Abdel-Fattah El Sisi announced in a televised speech his intention to impose a nationwide state of emergency for three months following two deadly bomb attacks on Christian ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Dismiss