OPEC has no need to change output ceiling: UAE minister

08:27, March 17, 2010      

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The Organization of Petroleum Exporting Countries (OPEC) has no need to change its output ceiling as current oil prices between 70 and 80 U.S. dollars per barrel are "acceptable and reasonable" for both producers and consumers, United Arab Emirates (UAE) Energy Minister Mohammed bin Dhaen Al Hamili said Tuesday.

"The current levels of oil prices will enable OPEC member states to secure investment for boosting crude oil output capacities in the years to come to catch up with pace of economic growth," Al Hamili was quoted by the state news agency WAM as saying ahead of an OPEC ministerial meeting in Vienna Wednesday.

It is unreasonable to predict that the meeting will put forward a resolution on production ceiling in the coming period, he said, adding that current data in the oil market do not invite a change in the targeted output level.

OPEC has revised up its projection for growth in the world oil demand for this year from 810,000 barrel per day (bpd) to 880,000 bpd based on indicators showing recovery of the global economy, Al Hamili said.

The minister noted that the cartel would continue to provide enough crude oil supplies in case the demand goes up, saying it has additional output capacity to meet that demand.

The recent rise in oil prices "has nothing to do with supply and demand fundamentals" and is mainly attributed to the dollar exchange rate against other international currencies and indicators of economic growth, he added.

Highlighting the importance of producer-consumer dialogue for ensuring stability in the oil market, Al Hamili said a joint meeting later this month in Mexico will be of special significance, as it comes at a time when the global economy is still reeling under the influence of the international financial crisis.

On March 30 to 31, the Mexican resort of Cancun will host the 12th International Energy Forum and the 4th International Energy Business Forum, a biennial gathering of the world's energy ministers and industry leaders.

Source: Xinhua
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