OPEC action 'justified' in light of growing demand: US' Bodman

Washington (Platts)--15Jun2005

OPEC's actions earlier Wednesday to boost its output ceiling were "justified
in light of clear market indicators that demand is growing around the world,"
US Energy Secretary Samuel Bodman said in a statement. 

The cartel agreed in Vienna Wednesday to increase by 1-mil b/d its crude
output ceiling in two stages -- 500,000 b/d from the beginning of July and
another 500,000 b/d that could be implemented between now and the cartel's
next meeting on Sep 19.

Bodman noted that producers have "long committed to adequately supply the
markets in order to support strong economic growth." He also said the Bush
administration would continue to talk with producing nations, OPEC and
non-OPEC nations, to ensure the markets are adequately supplied and global
economic growth continues.

This story was originally published in Platts Global Alert
http://www.globalalert.platts.com

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