May 14, 2007, 13:31 GMT
Nicosia - The major producers of the Organisation of Petroleum Exporting Countries (OPEC) have little appetite to change their crude output as long as the benchmark West Texas Intermediate prices remain in the low- to mid-60 dollars a barrel, the Middle East Economic Survey reported Monday.
The Cyprus-based weekly said that OPEC's main producers believe current prices around these levels have not hurt the global economy, that they have increased investment in energy across the board and as such have been acceptable for both producers and consumers.
Senior OPEC delegates concede that high oil prices have prompted the growth in demand to slow down but believe this is a positive development, helping to deflect the risk that global oil markets could see the same price volatility as in 2004 when demand sharply outstripped forecasts and supply growth.
This view contends that oil prices have undergone a structural change that will see stability close to present levels, the MEES report said.
Many producers are also convinced that oil price ranges of five years around 20 to 30 dollars a barrel will not be revisited.
But the increase in non-commercial oil trading has emphasized the view that it is the action of financial funds in the market and geopolitical factors, rather than producer decisions on output, that are dominating price activity.
There is no tightness in crude OPEC cannot do any more than it is already doing, one senior OPEC delegate was quoted by the MEES report as saying.
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