adminMinisters from the Organisation of Petroleum Exporting Countries, which pumps about 35 percent of global oil supplies, will convene in the Austrian capital amid angst over volatile financial markets and a weak outlook for world energy demand.
The dozen-member cartel, whose kingpin is Saudi Arabia and which includes also countries from Africa and Latin America, will also use its latest gathering at its headquarters to seek progress towards appointing a new secretary-general.
Industry experts expect that Opec will leave its collective oil production ceiling at 30 million barrels per day, where it has stood since the end of 2011, despite actual output exceeding this official target level.
“Expect little new, with the unchanged status quo for now,” Andrey Kryuchenkov, an analyst at Russian financial group VTB Capital, said, noting than US$100 is “a decent and profitable level for most members”.
Benchmark Brent oil prices, which stood at about US$110 a barrel at the time of Opec’s previous meeting last December, plunged under US$100 in April for the first time since mid-2012 on the back of global demand concerns, abundant US crude reserves and a strong dollar.
However, the market has since stabilised above the US$100-a-barrel level that is deemed acceptable by Saudi Arabia — the biggest oil producer in the cartel and which has the largest amount of spare capacity. — AFP.
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