OPEC undecided on oil output rise, sees market balanced

OPEC is still deciding whether to adjust crude oil output in December and so far sees a “balanced” market, a senior Gulf source told Reuters on Tuesday in the Chinese city of Fuzhou, on condition of anonymity.

Asked about the chances of a change in oil output by the oil producing bloc, he said: “It’s too early to say. We’ll be looking at numbers. “We are not looking at the price alone, we are also looking at how demand and supply is doing. For now, stock levels are very comfortable and supply is meeting demand. The market is balanced.”

Asked what was driving prices, he said: “Some of it is expectation, some of it is speculation.”

The OPEC countries will meet in Angola on December 22 to decide on its oil production policy. United Arab Emirates Oil Minister Mohammed al-Hamli said on Saturday that raising production was not currently on the agenda, while both Iran and Venezuela have said OPEC does not need to increase production.

Top oil producer Saudi Arabia will lift supplies to big oil companies in December, industry sources said on Monday. Saudi Oil Minister Ali al-Naimi told Reuters in September that he saw increasing demand for Saudi crude as evidence of the world economy recovering from recession, with no need for OPEC to cut output next year.

Tags:  oil output, OPEC