OPEC Agrees to Keep Production Quota at 30 Million Barrels per Day
OREANDA-NEWS. January 16, 2013. The Organization of Petroleum Exporting Countries – OPEC, agreed to keep oil production at 30 million barrels per day during the 162nd Meeting of the Conference which took place in the city of Vienna, Austria.
Due to the uncertainty regarding demand, the Conference of OPEC decided to keep the current production ceiling of 30 million barrels per day. They also agreed to respond promptly if necessary to any situation that could have a negative impact on the oil market.
OPEC’s projected oil demand for 2013 will be reduced to 29.7 million barrels per day, despite the small increase of the anticipated world oil demand for the upcoming year, which will be supplied by countries outside the Organization.
Consequently, the organization agreed to remain alert to the evolution of the demand and supply of oil with the uncertainty that prevails in the main world economies and the persistent weakness of the international financial system, which according to the forecasts will continue to affect the global economy as well as the oil market.
The 162nd Meeting considered as the main challenge for the world oil market in 2013 the uncertainty surrounding the global economy. The fragility of the euro zone is one of the highest risks, with its sovereign debt crisis and rise of unemployment.
During the meeting, the OPEC ministers agreed that the price volatility observed in 2012 was caused mainly by the increasing speculation in the commodity markets, exacerbated by geopolitical tensions and exceptional climatic conditions.
Lastly, the Meeting of the Conference agreed to have their next ordinary meeting in Vienna on May 31, 2013 and extend for one more year the position of current secretary general of the organization, Abdalla Salem El-Badri.
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