OPEC ministers are scheduled to meet on Dec 10 in Cairo. Oil prices have been on a decline in the past few weeks and with worries of poor stock for the winter season fading, prices are expected to remain subdued, if supplies are obstructed by some unexpected event. The main issues before OPEC are whether to tamper with the production quota as well as the price band.
Iranian Oil Minister Bijan Namdar Zanghaneh said yesterday said that there is no consensus amongst OPEC members on the quota and price band and hence it is unlikely that any decision will be reached at the Dec 10 meeting.
OPEC's official output ceiling, excluding Iraq, is currently at 27mn barrels per day (bpd) against which OPEC countries, including Iraq, are currently producing an estimated 30mn bpd. The meeting is expected to discuss adherence to production quotas by member countries.
Kuwait’s Oil Minister Sheikh Ahmed Fahd Al-Sabah told reporters in Kuwait City that OPEC needs to stop all over production, if prices continue to decline. US light crude is at around USD 42.95 a barrel. Oil prices have declined sharply by around USD 7 last week and are down from their October’s peak of USD 55.67 a barrel.