OPEC to lift output ceiling by two million bpd "whenever necessary"

The majority of the Organization of Petroleum Exporting Countries (OPEC) have agreed on rising output ceiling by two million barrels per day (bpd) " when necessary".

This was announced by OPEC President Sheikh Ahmad Al-Fahd Al- Ahmad Al-Sabah on Monday, the Kuwait News Agency (KUNA) reported.

Sheikh Ahmad, who is also Kuwait's energy minister, told KUNA in Vienna where an OPEC ministerial meeting is held that OPEC members would discuss ways to put such increase into effect, taking into consideration that OPEC had announced that it has a capacity to produce extra 2 million barrels a day, adding the extra production decision would be officially endorsed by Tuesday.

"We are awaiting any real sign from the market to fulfill its needs (of oil)," he assured.

The Kuwaiti official stressed that oil markets were having sufficient supplies denying any relevant crude shortage.

He also added that the OPEC initiative comes to ascertain its important role in balancing crude prices, stabilizing the market and removing all relevant concerns.

Sheikh Ahmad blamed geopolitical reasons, natural disasters such as Hurricane Katrina, and fears of a potential stop in oil supplies to the market, for pushing oil prices up, advocating the cartel was not responsible for these factors.

He praised a statement by the energy committee of the European Union, which has highlighted OPEC's role in stabilizing oil markets.

Sheikh Ahmad said the statement was "courageous and positive" and has undermined all allegations that OPEC was behind the current oil price surge.

Asked about a statement by the British Chancellor of the Exchequer, Gordon Brown, in which he blamed OPEC for the price surge, Sheikh Ahmad said the British official did not have enough or correct information about the issue, which made his statement " unrealistic and untrue".

According to OPEC's statistics, the group pumps about 28.2 million barrels of oil a day, about a third of the world's production and 40 percent of global exports.

Source: Xinhua