Raise oil prices, OPEC takes no action
Energy prices continued to rise May 27 with crude topping $ 63/bbl before the decision of the Ministers of the Organization of Petroleum Exporting Countries not to change production quotas at its meeting on May 28 in Vienna.
OPEC's inaction was expected, but helped blow crude above $ 64/bbl in intraday trading on the New York market. The group noted that recent indicators of the global recession of fund in May this year. But they also noted large inventories of oil, weak industrial production, and high unemployment still exist. Production ceiling of OPEC is 24.85 million bpd for 11 members other than Iraq. Although compliance remains relatively strong, OPEC members have not yet fully implemented the 4.2 million b / d agreed that the reduction last year.
"Some of the traditional 'hawks' have been asked to [another] court, either at this meeting or in the future," said analysts from the Houston office of Raymond James & Associates Inc. Given the weakness of the foundations, obviously, even Saudi Arabia Oil Minister [Ali al-Naimi] considers that the increase in oil prices is a function of optimism that the worst of the recession is behind us, they said.
Likely increase in oil prices were a factor in the decision of the group. The average price of OPEC basket of 12 reference crudes fell by $ 2.04 to $ 60.75/bbl on May 27.
[Source]
"Some of the traditional 'hawks' have been asked to [another] court, either at this meeting or in the future," said analysts from the Houston office of Raymond James & Associates Inc. Given the weakness of the foundations, obviously, even Saudi Arabia Oil Minister [Ali al-Naimi] considers that the increase in oil prices is a function of optimism that the worst of the recession is behind us, they said.
Likely increase in oil prices were a factor in the decision of the group. The average price of OPEC basket of 12 reference crudes fell by $ 2.04 to $ 60.75/bbl on May 27.
[Source]
