An Opec meeting in Vienna will set oil production levels for peak winter demand. Opec might decide to keep oil output steady, wary that the US economy may be slowing down. This would undermine forecasts for strong oil demand growth.
Kuwait’s acting oil minister is Mohammad Al Olaim. He says: “The problem that the prices are increasing now, we think, is not related to the demand and supply, so whatever you do, maybe, it is not going to effect, crucially, directly, the prices.”
Currently OPEC pumps around 30 million barrels per day, just under a third of the 86 million of the global market.
Demand forecasts for the last quarter of the year range from 87.08 projected by OPEC, to 88.1 million estimated by the International Energy Agency.
Most Opec member seem happy with the current output, though Saudi Arabia , the world’s biggest exporter has yet to give its views.
Any increase would help ease upwards pressure on oil prices, which are close to a record high of 78.77 a barrel ,set on 1st August.If Opec did increase production, it would reverse its cuts of 1.7 million bpd, around 6 percent , in place since October 2006.