OPEC decides to maintain oil output

The OPEC oil cartel decided on Thursday in Caracas to maintain its crude output at a 25-year high of 28 million barrels a day(bpd), despite pumping close to its maximum production capacity amid soaring oil prices.

The decision was made at a closed-door session of the Organization of Petroleum Exporting Countries (OPEC) members, which had reached an informal agreement earlier that its official output quota of 28 million bpd would not be adjusted.

Analysts say OPEC dismisses concerns about rising inventories of crude oil and weakening demand growth, as most of OPEC members feel that the current oil price is too high for them to cut production.

They believe that the oil cartel recognized a cut in production would probably push oil prices higher and slow demand for its fuel, which might potentially jeopardize world economy as a whole.

Venezuelan Oil Minister Rafael Ramirez said after the meeting there had not been any decisions to increase or cut oil production, acknowledging that OPEC did not adopt Venezuela's suggestion of a production cut.

The Venezuelan oil minister said earlier on Monday that Venezuela favored a cut in OPEC's oil production to restore the balance of the international oil markets as the levels of oil inventories were above their historical averages.

According to its timetable, OPEC's next two meetings are scheduled for Sept. 11 in Vienna, Austria, and Dec. 14 in Abuja, Nigeria.

Source: Xinhua