OPEC to discuss oil output hike

KUWAIT CITY—The Saudi and Kuwaiti oil ministers said on Sunday that OPEC will discuss the possibility of raising oil output if needed to cool soaring prices. “It is premature (to speak of a hike). When OPEC meets, we will discuss this issue,” Ali al-Nuaimi, oil minister of OPEC kingpin Saudi Arabia, told reporters during a short visit to Kuwait.
He did not specify which meeting of the cartel he was referring to. OPEC is holding a summit in Riyadh on November 17-18 and ministers are also due to meet in Abu Dhabi on December 5. Kuwait’s acting oil minister Mohammad al-Olaim said OPEC will “not hesitate to shoulder its responsibilities.”
He said the cartel would be willing to increase output “if there is a need to raise production in accordance with market parameters.” Nuaimi said oil prices were being determined by the market and the oil-rich Gulf states had no control over prices.
“Prices are fluctuating everyday and are determined by the market ... Gulf states do not control prices. Gulf states are trying as much as possible to ensure supplies and stabilise the market,” the Saudi minister said.
Olaim said current oil prices were a cause of concern for all parties, but OPEC would not take a decision before analysing information and data about the market. “During the Abu Dhabi conference, we will assess the market situation and the stocks and talk about if there is a need to raise output,” he said.
Oil prices have been nearing the 100 dollar a barrel mark. On Wednesday, it raced to all-time highs of 98.62 dollars in New York and 95.19 dollars in London. “We will analyse available data to determine what is driving the market to see if we are responsible or there are other causes,” Olaim said.
“There are many factors affecting prices and not only supply and demand. “A high increase in output is not in the interest of anyone. Similarly, very high prices are not in the interest of anyone,” the Kuwaiti minister said.
Olaim said he discussed with Nuaimi the upcoming OPEC summit.
The Saudi minister has also visited Bahrain. World oil prices drifted higher on Friday, with New York’s main contract, light sweet crude for December delivery, closing at 96.32 dollars a barrel. In London, Brent North Sea crude for December delivery gained 39 cents to 93.18 dollars.—Agencies