OPEC statement reaffirms 500,000 b/d output quota hike from Aug 1

London (Platts)--15Jul2004

OPEC's Vienna headquarters issued a statement Thursday confirming the
cancellation of next week's Jul 21 conference and reaffirming the cartel's
intention to raise the ten-member crude output ceiling by 500,000 b/d to
26-mil b/d 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 b/d to 26-mil b/d from Aug
1, and that there was now "no call" for the meeting to take place.
"Consultations took place, yesterday, 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," the statement
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 b/d to 26-mil b/d, 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," the statement 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, as re-confirmed in the statement. Meanwhile, the
statement said, OPEC president Purnomo will hold a press conference Jul 22 in
Vienna.

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