Kuwait says OPEC aims to make up for lost Nigerian output

Kuwait City (Platts)--12Apr2006

OPEC could decide to raise the group's official crude output ceiling of
28 million b/d to try to stabilize world oil markets as international crude
prices push higher on concerns about Iranian and Nigerian supply, Kuwait's oil
minister, Sheikh Ahmed Fahed al-Sabah, told Platts Wednesday.
"Maybe, maybe but this should be agreed on by all the members through the
organization," Sheikh Ahmed said when asked about the possibility of an OPEC
ceiling increase to help the market.
OPEC is next scheduled to meet June 1 in the Venezuelan capital Caracas.
High prices prevented OPEC from even thinking about cutting production at
meetings earlier this year, despite projections of a sharp fall in demand
during the second quarter.
Increasing international tension over Iran's nuclear program have helped
drive crude prices higher, with US light crude futures trading around
$69/barrel in pre-open outcry trade Wednesday.
A day earlier, Iran said it had successfully enriched uranium to the
level required for power generation. Tehran insists its nuclear program is for
peaceful purposes, but the West suspects it of trying to build atomic weapons.
The Iranian announcement came just 15 days ahead of a Security Council
deadline for Iran to freeze its enrichment program.
Also driving prices upward have been continuing worries about Nigerian
oil supply, some 25% of the country's crude production remaining shut in as a
result of attacks on oil facilities by Niger Delta militants.
"I think the geo-political tensions are leading the prices," Sheikh Ahmed
said. "Whenever there is tension, increasing the supply will never be
effective in helping the prices."
But OPEC will aim to reassure the market that it will do its best to ease
market concerns, Sheikh Ahmed said, insisting that there was still no supply
shortage.
"I think we will do our best, as Kuwait. I think all of my colleagues in
OPEC will do the same...to support the stability of prices," Sheikh Ahmed
said. "What we will do is at least guarantee there will be no shortage in the
market."
--Miriam Amie, newsdesk@platts.com

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