Continue OPEC Production Level

OPEC oil ministers meeting in Vienna, Austria, Sunday (15 / 3), agreed to continue the reduction in production level decision last September to May next. OPEC will meet again in Vienna on 28 May in order to reassess the world oil market situation. "It will continue until May," said Iraqi Oil Minister Hussein al-Shahristani told reporters after meeting. Qatar Energy Minister Abdullah bin Hamad Al Attiyah added that OPEC ministers from 12 countries will meet again on May 28 to discuss the market situation and deciding step further production cuts. OPEC's current official production reached 24.84 million barrels per day, after they agreed to reduce production by 4.2 million barrels per day in September to boost oil prices continue to weaken. OPEC has reduced production three times since September due to oil prices continued to weaken in line with the weakening world economy. OPEC meeting this time in an effort to boost oil prices rose again by trying to tighten the implementation of the existing production level or back to reduce production. However, oil consumption countries urged OPEC not to make oil prices rise again. However, it is possible, OPEC ministers also discussed a new step reduction of oil production to push prices. This option is taken when the oil supplies in the hands of consumers increases and prices continue to decline. The decision to extend the level of OPEC oil production is because the majority of OPEC ministers would prefer the application of the implementation of the reduction of 4.2 million barrels per day. Saudi Arabian Oil Minister Ali al-Naimi, when arriving in Vienna, Saturday, points out, it more supportive of the application of discipline in production. "Discipline obviously very good," said Naimi told reporters. "We have only 80 percent," he added about OPEC production discipline. It is said, the reduction of production to reduce excess supply, but demand for crude oil remained weak due to global economic conditions weaken. "You have to understand the world anymore because the economy is not healthy, oil demand is expected to further decline," he said. Independent petroleum observers said Saudi Arabia's crude oil production has fallen below target. And, the policy of OPEC production cuts since September have pushed oil prices from 32.40 dollars a barrel last December to 46 dollars per barrel on Friday. OPEC has so far quite satisfied because world oil prices rebounded, but the price is still below 100 dollars per barrel last year. Oil prices recorded a record 147 dollars per barrel in July 2008. However, OPEC to reduce production because they do not want oil prices plunged to 10 dollars per barrel as at the end of the 1990s. However, oil prices bounce back this is going to increasingly hitting the world economy that is dying due to the financial crisis. World oil demand is expected to return has decreased by about one million barrels per day in 2009 compared with demand in 2008 due to weaker world economy. The World Bank estimates world economic growth in 2009 will be negative. Source: kompas