December, OPEC Production problems Disconnect

CAIRO Organization-State-The State Oil (OPEC) states will take a decision on cutting production at a meeting in Algeria, December 17, the future.

"This meeting is only as a preparation for the decision later in Algeria," said Saudi Arabian Petroleum Minister Ali al-Nuaimi in Cairo yesterday. Other OPEC members such as Iran, Kuwait, Qatar and Nigeria also expressed support to make the decision at a meeting in Oran, Algeria, December later. Libyan Oil Minister Shukri Ghanem said, meeting this time is only a consultation. "All options are open.

We think the decision will be taken immediately, "he said. According to him, currently all OPEC members should learn the problem of supply and demand of oil and increase persediaan.Namun problems, not including the possibility of cutting production to make decisions on these meetings. It disclosed Likewise Kuwait Oil Minister Mohammad al-Olaim. "I estimate we will not make a decision at this time, although the market has experienced a surplus of oil," he said.

About the amount of trimming production, there has not been a dominant figure from the OPEC meeting in Cairo. However, Saudi Arabia stated that the price of oil in the range of USD75 per barrel considered fair for producers. Saudi Arabia is the largest oil exporter and the main player in OPEC, which supply about 40% of the world's oil needs.

Meanwhile, Iraqi Minister of Petroleum Hussein al-Shahristani said, the price of oil in the range of USD80 per barrel price is reasonable. Therefore, Iraq will support measures to OPEC cutting oil production to a range of numbers tersebut.Adapun Venezuela Oil Minister Ramirez said OPEC should make a reduced production of at least 1 million barrels per day before the end of each year.

The Qatar Energy Minister Abdullah al-Attiyah berujar, oil prices are currently too low to support the investment industry oil industry to meet the needs in the future. "We can all live with the price of USD70 per barel.Dengan this price we can invest in the upstream sector, below that will be very difficult to increase capacity" he said.