Opec to Raise Production Ceiling By 500,000 Bpd Official

According to “Tehran Times”, OPEC is to add 500,000 bpd more to its production ceiling by end of this month, said an OPEC official. The OPEC Secretariat official said that officials of 11 OPEC members are negotiating a 500,000 bpd boost in the output of the organization to balance prices on the markets. The source said the OPEC’s official production ceiling stands at 28,400,000 bpd but the members are overproducing by more than 1.5 million bpd. Kuwaiti Oil Minister and the OPEC president Sheikh Fahd Ahmad al-Sabah confirmed the ongoing consultations on the output increase, saying with approach of the cold season, demand for crude will rise on the markets and the OPEC is going to raise the ceiling to help build up understanding with consumers. The OPEC president said the OPEC ministers will in their future meeting assess different mechanisms to adjust the prices.The OPEC meeting is to be held in Vienna on September 19. Saudi Arabia, Kuwait, Indonesia and Qatar are among proponent of output rise, while Venezuela is against such an increase on the ground that the cartel has not the sufficient capacity for such an increase.