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OPEC Meeting Does Not Yield Oil Production Change

OPEC ministers agreed to maintain crude oil production at current levels during meetings held in Quito, Ecuador.

Oil revenues for the 12 nation Organization of Petroleum Exporting Countries (OPEC) cartel have increased 32% during the past year.

According to U.S. Energy Information Administration estimates during 2010 OPEC will record crude oil export earnings equal to $750 billion, up $571 billion in 2009.

There is growing sentiment that OPEC will move to increase production quotas if and when crude oil prices near the $100 a barrel mark.

OPEC was established in 1960 and has maintained its headquarters in Vienna since 1965.  OPEC is comprised of member nations Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

Saudi Arabia Advises OPEC To Maintain Oil Production Levels

Saudi Oil Minister Ali Al-Naimi is urging OPEC to maintain current production levels ahead of the groups meeting in Vienna on Tuesday.  Al-Naimi referred to the current range of oil prices as a "happy situation".

“We are extremely happy with the market, the economy is doing well, it will do better down the road, so I don’t see any reason to disturb this happy situation. The price has stayed very well in the range of $70 to $80. It is in a very happy situation.”

It is widely expected that OPEC will maintain its official quota at 24.845 million barrels a day.

Crude oil prices dropped below $80 for the first time in two weeks on Monday, closing at $79.80 in trading on the NYMEX.

 

 

OPEC Crude Oil Production Hits 14 Month High

OPEC oil production hit a 14 month high in February with output from Saudi Arabia increasing by 80,000 barrels a day.  Crude oil output by Saudi Arabia, the largest OPEC producer, averaged 8.2 million barrels a day in February.

Nigeria's oil production output declined by 85,000 barrels per day (4.2%) to an average of 1.94 million barrels per day.  This is the largest decline posted by any OPEC member nation for the period.  Attacks on oil installations in Nigeria have increased as the militant group "The Movement for the Emancipation of the Niger Delta" ended it's cease fire in January.

Another African oil producing nation, Angola, increased oil production by 75,000 barrels to 1.945 million barrels per day during February.

OPEC members will meet March 17 in Vienna to review output quotas and demand forecasts.  In January OPEC reduced production quotas by 4.2 million barrels to 24.845 million barrels per day.