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.
© 2007 dpa - Deutsche Presse-Agentur 
USA
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