09-03-08

Algerian Minister of Energy and Mines and current president of the Organization of Petroleum Exporting Countries (OPEC), Chakib Khalil, anticipated that the world demand on oil would decline by 1.4 mm bpd starting from the second quarter of this year, while the current production of the Organization stands at 29.6 mm bpd.
Khalil said that the motive behind the decision to maintain the organization's current level of oil production is the possibility of a retreat of the global demand on crude during the second quarter of this year, in addition to the abundance of existing stockpile of many consumer countries.

He believed that the current production and oil stockpile in many consuming countries were sufficient to cover the needs of the market for five years.
"Had we decided to increase production in light of all these facts, the result of this decision on prices is known in advance," he added.

He explained that in spite of those indicators that suggest the possibility of retreat in the price of oil, the organization decided to maintain the current production ceiling instead of reducing it aimed at helping the world economy to grow.
He added that the crisis facing the American economy reflected negatively on a number of the OPEC countries, especially in the Gulf region, such as Saudi Arabia and Qatar, in which inflation rate has reached 16 % due to the drop in value of the dollar to which most of the Gulf States' currencies are pegged.

Source: www.kuna.net.kw