TEHRAN: The Organization of the Petroleum Exporting Countries is not likely to lower its supply target when its members meet this week, Iran’s OPEC governor said on Monday.
"In the forthcoming OPEC meeting, most member states are calling for compliance with quotas and it does not seem there will be any decision on lowering OPEC’s oil production ceiling," Mohammad Ali Khatibi was quoted as saying by the semi-official Mehr news agency.
The 12-member producer group, which meets in Vienna on Thursday, has held its supply target steady since announcing a record output cut in December 2008.
Although official policy is unchanged, members’ compliance with output targets slid to as low as 50 percent this year from 80 percent in April 2009. In the last two months, compliance has risen slightly and reached 57 percent in September.
"There is now a balance between production, supply and demand which has led to relative stability in the global oil market," Khatibi said, predicting crude prices would be between $70 and $80 for the rest of the year.
On Saturday Khatibi was quoted as saying the oil market was oversupplied and that some OPEC members believed prices were still "very low".
Oil prices have recovered from just above $30 a barrel in December 2008 and are trading above the $70-$80 range OPEC has said is acceptable for consumers and producers.
"In the remaining months of this year, demand will hover at around 29.2-29.3 million barrels per day and prices will stand around $70-80 per barrel. Changes in climatic conditions in the northern hemisphere will not lead to any sudden rise in the price of crude," Khatibi said.
