(11 Jun 2012) Days before the latest quartely OPEC (Organisation of the Petroleum Exporting Countries) meeting in Vienna one analyst says the cartel's official oil production quota was unlikely to change.
"I would not expect that OPEC will change the official production quota that they have set the last time at 30 (m) million barrels," Johannes Benigni, managing director at JBC Energy said on Monday.
"Although OPEC is right now producing one-and-a-half-million barrels more than what they say they should produce," he added.
OPEC member Venezuela says it is concerned some fellow OPEC member countries are violating their quotas by producing too much oil and says it will bring up the issue at the meeting.
Saudi Arabia, for one, has been pumping more oil to offset supply losses from Iran which is the subject of economic sanctions over its nuclear programme.
"Making it difficult for Iran selling its oil is putting a stress on the oil market. In order to react to this we have seen that already in the first and second quarter other producing countries haven been producing more oil and have put those barrels at work," Benigni said.
Oil has dropped from 106 US dollars last month on concern over global growth and as Spain's banking crisis threatened to worsen Europe's economic slowdown.
On Monday the price of oil rose to near 85 dollars a barrel after Europe offered Spain a 125 (b) billion dollar rescue loan for its troubled banks and China significantly increased its imports of crude.
OPEC will also elect a new secretary at their meeting on Thursday.
Benigni said it appeared there was a "high chance that a compromise candidate will be elected" after both the Saudis and the Iranians nominated their own candidates. An Iraqi is also in the line up.
"There are more and more voices that say that maybe the Ecuadorian candidate will succeed," Benigni said.
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