OPEC to take action to curb oil prices, highlights need for more refineries
Newratings | June 14, 2005
The Organization of Petroleum Exporting Countries (OPEC) will work towards easing the high oil prices and bringing them down to more reasonable levels, the group’s president said on Tuesday. The OPEC, scheduled to meet in Vienna on Wednesday, is likely to consider a hike in its daily output in a bid to curb the rising oil prices.
OPEC President Sheik Ahmed Fahd Al Ahmed Al Sabah of Kuwait said on Tuesday that oil prices have surged past the $50 per barrel mark and some action needs to be taken to bring them down to reasonable levels. Sabah said that the market is well supplied, however, and that the main problem is the world’s inability to quickly refine low quality oil. Inadequate refining capabilities had restricted global production levels, he added. Sabah said that the OPEC would announce a hike in its production ceiling by 500,000 barrels per day, while considering another hike of a similar amount. OPEC ministers have said that although they are ready to raise their collective production quota for crude, it would have little effect on the prices.