OPEC reaffirms 500,000 bpd output quota hike from Aug. 1

OPEC's Vienna headquarters issued a statement reaffirming the organization intention to raise the ten-member crude output ceiling by 500,000 bpd to 26 mm bpd from Aug. 1.
The statement from OPEC's Indonesian president Purnomo Yusgiantoro said market conditions had not changed since the Jun. 3 meeting in Beirut, that OPEC members had already increased supply to the market and would further raise the OPEC-10 output ceiling by 500,000 bpd to 26 mm bpd from Aug 1, and that there was now "no call" for the meeting to take place.

"Consultations took place,… among OPEC heads of delegation on market developments since the 131st (extraordinary) meeting of the OPEC conference held in Beirut, Lebanon, and the supply/demand outlook, a review which has confirmed that market conditions remain essentially unchanged," OPEC said.
"Recognizing that OPEC Member Countries have already increased supply to the market, in line with the decision taken in Beirut, the organization re-affirmed its decision to further raise the OPEC-10 production ceiling by 500,000 bpd to 26 mm bpd, with effect from 1st August 2004, in order to maintain adequate supply to the market and support the continued, robust, global economic growth. In these circumstances, the organization has decided that there is, therefore, no call for the conference to meet on 21st July 2004, as originally foreseen," it said.

It said OPEC would continue to monitor market developments and remained determined to meet whenever the need might arise in order to maintain market stability and keep prices at acceptable levels to both producers and consumers. OPEC is next scheduled to meet Sep 15 in Vienna.
OPEC's production target is now 25.5 mm bpd. Contracts of US light crude for August delivery were down 15 cents at $ 40.82 on the New York Mercantile Exchange.