[Excerpt: Khreiji said OPEC will monitor petroleum prices in the coming
few days and "if it finds that there is a need to interfere, the cartel
president will consult with the remaining ministers to specify a date
for implementing the new increase."..."Pumping this increase is subject
to prices remaining at levels they had reached during the OPEC meeting
in Isfahan, Iran on March 16 at about $55 to $56 per barrel," he said.]

http://64.94.180.107/newsArticle.jhtml;jsessionid=0H0CGKN0K3IUWCRBAELCFFA?type=businessNews&storyID=8008010

OPEC Bides Time on Output Hikes
Sun Mar 27, 2005 11:49 AM ET
    
KUWAIT (Reuters) - OPEC is taking its time in increasing output quotas
by an additional 500,000 barrels per day due to global petroleum market
fluctuations, a spokesman for the oil producers' cartel was quoted on
Sunday as saying.

The Organization of the Petroleum Exporting Countries earlier this month
agreed to raise production quotas by 500,000 bpd and said it would
consult on whether to increase them by a further 500,000 bpd if prices
continued to rise.

"Oil prices have witnessed fluctuations on world markets in the past two
days, which prompted the organization to take its time in implementing
the second increase," Abdel-Rahman al-Khreiji told Kuwait's state news
agency KUNA in Vienna.

The spokesman echoed recent remarks from OPEC President Sheikh Ahmad
al-Fahd al-Sabah, Kuwait's energy minister, that the time had not come
yet to hike production quotas further.

Khreiji said OPEC will monitor petroleum prices in the coming few days
and "if it finds that there is a need to interfere, the cartel president
will consult with the remaining ministers to specify a date for
implementing the new increase."

"Pumping this increase is subject to prices remaining at levels they had
reached during the OPEC meeting in Isfahan, Iran on March 16 at about
$55 to $56 per barrel," he said.

Khreiji said that despite OPEC's decision at its March meeting to boost
its output ceiling by 500,000 bpd, several factors were pushing oil
prices upwards, including global refining problems and speculation on
world markets.

"These two factors are still impacting oil prices," he said.

World oil prices rose sharply on Thursday after a deadly explosion at
the third largest refinery in the United States triggered worries over
gasoline supplies.

NYMEX crude for May delivery settled up $1.03, or 1.9 percent, at $54.84
a barrel on Thursday. Khreiji said that by the end of the year OPEC
would have the capacity to provide some 3 million bpd extra if need be,
KUNA added.

Khreiji told KUNA that Kuwait will host in mid-May a joint workshop
organized by OPEC and the International Energy Agency as part of a
dialogue drive with energy-related agencies and bodies to discuss ways
to stabilize world oil markets.

OPEC also plans to hold an open dialogue with the European Union in
Brussels on June 9 on similar issues, he said.

� Reuters 2005. All Rights Reserved. 
enditem


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