VIENNA (AFP) — OPEC ministers gathering here for an output policy meeting insisted Monday that the cartel was not about to increase oil production, as the price of crude struck a record high of almost 104 dollars.
OPEC's president, Algerian Energy Minister Chakib Khelil, said the 13-member cartel which produces 40 percent of world oil would not consider an output hike at its official meeting in the Austrian capital on Wednesday.
His views were shared by Kuwait's acting oil minister, Mohammad al-Olaim, while Saudi Arabian Oil Minister Ali al-Nuaimi, whose kingdom is the world's biggest producer of crude oil and OPEC's most influential member, refused to address the media on arrival in Vienna.
Khelil, a traditional price hawk, even mentioned the possibility of an production cut, which hardline producers Venezuela and Iran are backing.
"The conference will study whether to maintain or reduce production," Khelil said in Vienna, adding that extra supplies were not needed since demand was not about to increase.
The only country capable of pushing through an increase in production to appease consuming countries would be kingpin Saudi Arabia.
Speaking to reporters Monday, Libya's acting oil minister Chukri Ghanem said the Organisation of Petroleum Exporting Countries was concerned about the health of the world economy but was unlikely to change its production policy.
"We are concerned about the world economy, about supply and demand," said Ghanem, who is also head of the Libyan national oil company.
"(But) I don't think we need to do anything for the time being," he replied when asked if OPEC would reconsider its production ceiling of 29.67 million barrels per day, excluding output by Iraq.
Qatar's Energy Minister Abdallah al-Attiyah echoed Ghanem, saying: "I'm confident that the market is well supplied."
Speaking over the telephone to AFP, he said stocks of crude oil were at their highest level in seven weeks.
Olaim also said Monday that OPEC did not need to raise crude output at its ministerial meeting at the organisation's headquarters in Vienna.
"There is no need for additional production," he told reporters on arrival in Austria.
Oil prices roared higher on Monday to strike a record high 103.95 dollars per barrel as traders reacted to the plunging US dollar and the comments from the OPEC ministers.
New York's main contract, light sweet crude for delivery in April, hit the historic peak as the dollar dived to a fresh record low against the European single currency.
London's Brent North Sea crude for April delivery, meanwhile, smashed through 102 dollars per barrel for the first ever time to reach a record 102.29 dollars per barrel.
A falling dollar, which slumped to a record low against the euro on Monday, boosts demand for dollar-denominated commodities such as oil because it makes them cheaper for buyers using other currencies.
"The weakness of the dollar continues to provide upward support for (oil) prices," said Barclays Capital analyst Kevin Norrish.
"OPEC members hinting at no production increase at their next meeting also provided support to prices."
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