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OPEC to Raise Production if US Economy Recovers
President of the Organization of Petroleum Exporting Countries (OPEC) Chakib Khelil said Tuesday that member states of the organization will increase its crude oil production if the U.S. economy recovers during the upcoming autumn this year.
"The current situation on the production cut below the one- million-barrels per day comes after the decrease in demand. So if this (demand) jumps, it will be necessary to reconsider our position," Khelil told a news conference.
OPEC announced early last week it would cut oil production by 1.5 million barrels per day as from September this year.
The September 26 OPEC summit will analyze oil production and discuss whether to increase output according to demand.
Khelil, who is on a two-day visit to Spain, indicated that if the U.S. economy "recovers, oil demand will grow, and our production will also increase in light of what will happen next winter."
Khelil, Algerian Minister of Energy and Mining, regretted that everyone blames OPEC for what happens in the oil market and reminded that "we only represent 40 percent of production."
He said oil prices "are not our responsibility, but that of national governments," because oil production only accounts for 20 percent of the final cost, with the balance going to taxes.
"For each dollar OPEC receives for oil sold, national governments collect four," Khelil said, adding that this shows " who should drop consumer prices."
Khelil reiterated that OPEC aims at maintaining price stability because unstable price is not good for consumers.
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