OPEC worried about member’s oil production targets

OPEC has told the BBC that compliance with oil production targets by the OPEC member countries fell to bewteen 50 and 56% in January 2010 compared with 80% a year ago.

Abdalla Salem El-Badri the Secretary General of OPEC told the BBC’s Business Daily programme the move was “worrying”. “The risk is you see a lot of oil in the market and no one is buying it. Then the price will come down.”

At its last meeting in Angola, OPEC decided not to change the amount of oil being produced by its members. Mr El-Badri said: “We need a price where we can invest in new capacity, new supply and also cater for the wealth of our people. Anything below $70 will not permit us to invest.”

He also said that while the global recovery was “still fragile”, OPEC was experiencing growing demand from China, India and the Middle East.

OPEC also said Wednesday that its basket oil price rebounded to $73.05 US dollars on the previous day, as markets reacted to strong economic growth in the United States. OPEC crude rose by $2.03 US dollars per barrel on Tuesday.

Tags:  2010, countries, january, member, oil production, OPEC, targets