OPEC not likely to raise oil production in December

Secretary General, Abdalla Salem El-Badri of OPEC said that the cartel will not raise oil production quotas despite the price of oil rising to $77 per barrel.

He told reporters in Abuja at the end of his three-day visit that the current rise in the price of crude on the international market has nothing to do with output, as there is no shortage of supply. The average price of crude this year is $57 pb, he noted, and assured that OPEC would intervene if it discovers abnormality in supply.

OPEC’s Secretary General said that his organisation is not likely to raise production when they meet in December, saying that there is still 125 million barrels of crude oil and fuel in floating storage. December crude oil closed down 84 cents at $79.12 per barrel.

He said OPEC is not interested in very high price of crude because it should be at a level that attracts investment to the sector. The current oil price does not encourage member countries to invest in the industry, El-Badri reiterated, stressing that OPEC would prefer a price that is good for both the producing and consuming nations.