THE SECRETARY-General of the Organisation of the Petroleum Exporting Countries (OPEC) yesterday refused to rule out an increase in oil production but only if market conditions justified such a move.
Speaking after a meeting with President Tassos Papadopoulos at the Presidential Palace, Abdalla Salem El-Badri told reporters there was no low inventory, noting that oil stocks were within the five-year average.
On possible plans to increase oil production, the Secretary General said reports would be prepared ahead of February’s OPEC meeting. “Of course we will examine the supply and demand and the stocks, we will take into account the world growth and we will prepare our report and give it to the ministers.
“I am sure that the ministers, in the conference, will not be hesitant to increase the production, if fundamentals justify that,” he said.
During his recent tour of the Middle East and Gulf states, US President George Bush has made a point of asking oil-producing countries to pump more oil out the ground to settle rising prices. El-Badri had this to say: “When the market justifies an increase in production, every country will contribute to that increase.”
He noted that OPEC has increased production by about five million barrels a day since 2002 because it believed the market justified that increase.
“OPEC, as I said, will not be hesitant to increase production, if the market justifies that increase,” he pointed out.
Asked if the current oil price was justified by fundamentals, he replied there was “a disconnect between oil prices of today, disconnect between prices and fundamentals”.
“The market is really influenced by other factors. I have said that many times and I will say it one more time: this is because the US dollar value, the sub-prime mortgage problems, the geopolitical situation and above all speculator,” he added.
The OPEC chief described Papadopoulos as “very knowledgeable” about oil.
“So we talked about the oil situation in the world, we talked about supply and demand, stocks and future prospects. It was very fruitful meeting,” he said.
Asked if the President sought his advice regarding oil exploration by Cyprus, El-Badri said the President had not asked for any advice on oil activities.
“I am informed about any country that wants to have new activities but we did not speak about Cyprus’ activities in particular,” he added.
This is the first time an OPEC Secretary General is visiting Cyprus. He is here at the invitation of the Nicosia Chamber of Commerce and Industry was due to address a business dinner at the Hilton Hotel last night, hosted in his honour.
OPEC is a permanent intergovernmental organisation created in 1960 and based in Vienna.
The 13 oil-producing members are Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, Libya, UAE, Algeria, Nigeria, Angola and Ecuador.
