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OPEC Ministers Debate on Extra Oil Output

Posted on: Tuesday, 20 September 2005, 09:00 CDT

OPEC ministers debate on extra oil output

VIENNA, Sept. 19 (Xinhua) -- OPEC ministers met here on Monday to discuss about whether to increase the group's output ceiling or make available 2 million extra barrels of oil a day, in a bid to calm the oil market.

OPEC President Sheik Ahmed Fahd Al Ahmed Al Sabah, who is also Kuwait's oil minister, said the group was considering boosting its current output ceiling of 28 million barrels a day by 500,000 barrels, or offering the additional 2 million barrels to test demand for crude and cool near record-high prices.

"I hope the 2 million barrel option will be approved," said Sheik Ahmed.

While crude prices are well off the record intraday high of 70. 85 US dollars reached in the wake of Hurricane Katrina, they were up sharply Monday in part on worries that Tropical Storm Rita could sweep into the U.S. oil producing and refining zone.

Saudi Oil Minister Ali Naimi said OPEC's aim was to "show good intent" and to emphasize that oil was available at a time when the markets are worried about supply disruptions.

He said his country has the capacity to immediately raise its oil production from around 9.5 million barrels a day to 11 million barrels a day if needed.

It is not yet known when the ministers would make the decision. The meeting will last two days.

Source: Xinhua News Agency - CEIS

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