Monday, December 21, 2009

al-Naimi expects no change in production quotas

Dec. 21 (Bloomberg) -- OPEC will make “no changes” in production quotas when it meets tomorrow in Angola, Saudi Oil Minister Ali al-Naimi said.

“No, absolutely not,” al-Naimi said today as reporters asked if the Organization of Petroleum Exporting Countries will adjust the output limits that have been in place all this year. Asked if he was happy with oil prices, he said, “Yes, absolutely.” Al-Naimi predicted “gradual, steady growth” in the economy next year.

OPEC has a consensus to extend the current production limit of 24.845 million barrels a day, Secretary General Abdalla Salem el-Badri told reporters earlier today. Oil has gained 66 percent since the beginning of 2009, when production cuts agreed late last year took effect. The group left quotas unchanged for a third time when it last met in September.
Source: Bloomberg.  Not a big surprise - $70-$75 oil is well inside OPEC's comfort zone.

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