Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    US employment cost index 3.6% up in year to June 2025    Egypt welcomes Canada, Malta's decision to recognise Palestinian state    Pakistan says successfully concluded 'landmark trade deal' with US    Sterling set for sharpest monthly drop since 2022    Egypt, Brazil sign deal to boost pharmaceutical cooperation    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Egypt exports first high-tech potato seeds to Uzbekistan after opening market    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



OPEC to eye economic stimulus, not just oil supply
Published in Daily News Egypt on 09 - 09 - 2009

VIENNA: OPEC ministers meeting in Vienna this week were expected to keep supply targets intact and instead rely on hoped-for economic growth to sustain oil prices.
The oil market rose towards $69 a barrel on Monday after Group of 20 finance leaders said at a weekend meeting they would not end stimulus plans until recovery was well established.
Traders predicted the extended financial support would translate into higher fuel demand.
Delegates already in Vienna ahead of the meeting of the Organization of the Petroleum Exporting Countries to begin late on Wednesday said they were satisfied with the oil price, even though inventory levels were much higher than OPEC considers appropriate.
Nothing has changed, the price fell a bit last week but that s certainly not enough of a cause for any talk of a new cut, one delegate told Reuters. There s no need to change output.
Others took a similar line.
I think the current price level is not an issue for most OPEC members, another delegate said.
OPEC has kept its official output targets steady since it announced late last year a record cut of 4.2 million barrels per day from September 2008 production.
But as the oil market has recovered from a low of $32.40 in December - its weakest in nearly five years - to this year s peak of $75 hit in August, it has reduced levels of compliance with agreed curbs from a peak of 80 percent of agreed cuts to less than 70 percent.
The lapsing discipline has contributed to an inventory build up that has taken stock levels to the equivalent of nearly 62 days of forward cover, according to figures from the International Energy Agency. That is around 10 days more than OPEC views as comfortable.
For some OPEC members high stocks are a greater issue than they are for others, although all in OPEC have been pleasantly surprised trader optimism has sustained a rally in defiance of bulging inventories.
Leading exporter Saudi Arabia said earlier in the year it was at ease with an oil market around $50, although that level was well below the roughly $75 it has said is needed to stimulate investment in new supplies.
Saudi Arabia has taken the biggest share of output cuts while countenancing sliding discipline from other members, notably from OPEC president Angola.
The different levels of adherence complicate the task of any new output cut, although some analysts have said OPEC might have to address when to reduce supplies even if any new curbs will not be agreed this week.
Apart from varied discipline, OPEC, which supplies more than one third of the world s oil, also faces the challenge of non-OPEC producers, which ignored the group s appeals to join in attempts to bolster the price.
Output from the largest non-OPEC exporter Russia hit a record high in August of nearly 10 million bpd.
Together with other observer nations, Russia is not invited to this Wednesday s OPEC meeting, scheduled to start at 9.30 p.m. local time (1930 GMT) after Ramadan fasting. -Additional reporting by Rania El Gamal.


Clic here to read the story from its source.