OPEC worried about high oil prices, pumping near capacity: Rahman

London (Platts)--29Jul2004

OPEC continues to be concerned about high oil prices and is doing all it can
"to restore order and stability to the market," including pumping close to its
crude production capacity, Indonesia's OPEC governor Maizar Rahman said
Thursday. 

Rahman, currently acting as the cartel's secretary-general, told a
World Energy Council forum in Jakarta that OPEC was committed to world oil
market stability. Quoted by the OPEC news agency, he said OPEC was concerned
that "high prices are occurring in spite of the market remaining well-supplied
with crude and despite the continued efforts of our member countries to meet
market requirements." OPEC members "are producing close to capacity," he said.
"Our most recent assessment shows that OPEC-10 [the ten members bound by crude
output quotas] are currently producing some 2-mil b/d above the agreed output
ceiling. This should not, however, be seen as a violation of our production
agreement. Instead, it should be recognized as constituting a positive
response by our members to the current market situation."

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