Dubai (Platts)--29May2008

OPEC director of research Hasan Qabazard said Thursday the oil market is
well supplied and that he sees no need for the exporting group to increase its
production target.

"The market is well supplied, why should we raise production?" Qabazard
said.

"Saudi Arabia increased supply and nothing happened," Qabazard added in
reference to a decision earlier this month by the kingdom to add 300,000 b/d
to its production from June.

Qabazard also said that stocks are currently above the five-year average
and that while OPEC had been expecting an annual average stock build up of
200,000 b/d, it is now expected this will be over 400,000 b/d for the year.
Excluding Iraq, the 12 OPEC members bound by production agreements have a
collective output target of 29.673 million b/d.

OPEC is next scheduled to meet on September 9.