Arab Oil Ministers See No Need to Increase Output, Oman Says
By Sean Evers
Muscat, Oman, Feb.24, 05:07 (Bloomberg)-- Arab oil ministers from
the Persian Gulf yesterday saw no need to increase crude output in
April, though tightening inventories or a surge in prices could
lead OPEC to pump more oil, a member at the meeting said.
The Gulf Cooperation Council, which includes Saudi Arabia,
Kuwait, the United Arab Emirates, Qatar, Oman and Bahrain met
yesterday and said only the group would ensure oil prices remain
in check. Some analysts had expected the group would recommend the
Organization of Petroleum Exporting Countries boost output.
``We studied the issue of increasing production,' said
Mohammed al-Rumhy, Oman's oil minister, Oman's official ONA news
agency reported. ``However, figures showed that there isn't a need
to increase at present. The next few weeks will decide the future
of the oil markets.'
... ... ...
Some analysts argue demand in the second quarter will be
strong enough to convince OPEC to raise output.
``On average, the second quarter is a strong quarter in terms
of price because refineries tend to process more crude than at any
other time of year, in anticipation of the U.S. summer driving
season,' said Mohammed Abduljabbar, an oil analyst with
Washington-based Petroleum Finance Co. ``The second quarter might
be a low-demand season for final products, but it's a big demand
period for crude oil.' |
