OPEC Votes to Keep Output Steady
The Organization of Petroleum Exporting Countries said Tuesday it will maintain its current quotas for oil production, but will open the spigots to increase supply if a war in Iraq does threaten world oil markets, the Associated Press reported.OPEC members dismissed calls that it should ease production limits to reassure world oil markets before a possible U.S. attack on Iraq, AP said.
The cartel contends the world has enough oil right now, and blamed the threat of war for instigating fears of a worldwide oil shortage, AP reported.
Saudi Arabia said that it believes that if war breaks out, it can make up for any supply shortfalls, Bloomberg reported (Click here for related coverage.).
On delegate to the cartel’s meeting said OPEC would likely meet again in June to review the situation on the world’s oil markets, but a war in Iraq could force an emergency meeting before then.
Oil traders are worried, AP said, that a war in Iraq would not only prevent Iraq’s 2 million barrels of oil a day from reaching the market, but that a war could spread to other countries, further reducing supplies from the oil-rich region.
AP said that prices of light, sweet crude for April delivery had risen about 2 cents a barrel to about $37.30 a barrel in trading in New York.
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