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OPEC Head Sees No Need to Raise Oil Output
OPEC head Chakib Khelil said Sunday he sees no need for the oil cartel to raise its production because Iraq is not set to stop its exports, but insisted the group could make good any shortfall if necesssary. "I understand there's no cut in production from Iraq," Khelil, Algeria's oil minister, told reporters as he arrived at a hotel for a meeting of the Organization of Petroleum Exporting Countries, which gets under way Tuesday.
"The Iraqi have said they are going to meet all their contracts that they have entered into for the next month," he said. "I don't expect... any change in supply from Iraq," he added.
Asked whether OPEC was prepared to step in to make up the shortfall if Iraq makes good on its promise to halt UN-supervised oil exports from Monday, Khelil replied: "Of course. We always meet demand in the market... whatever the reason may be."
Baghdad announced Saturday it would stop its exports of 2.2 million barrels per day in the UN food-for-oil sanctions in protest of a US-British proposal of a new regime of "smart" sanctions.
With the supply outlook unaffected by Iraq, Khelil said, "there is no need for OPEC to really increase production because the prices are stable at 25 dollars."
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