OPEC expects oil prices stay at the average position after 19 September meeting.
OPEC doesn’t want to raise crude oil output on this sensitive market as it sees other objective reasons for prices up, they are the possibility of a U.S. war with Iraq and the strength of the global economy. And they are to be solved simultaneously as soon as possible.
Corporate scandals laid law the world economy, the US government doesn’t want to quit idea of instructive war so why the OPEC should make a sacrifice.
Moreover OPEC has already exceeded the cartel's output ceiling of 21.7 million barrels a day by 1.8 million barrels a day in July. The more output may lead to overproduction.
“Some OPEC sources have said the group's best option at the Sept. 19 talks in Osaka, Japan, is to reinstate the cut of 1.5 million barrels per day in the output ceiling instituted Jan. 1. This would improve OPEC's credibility by bringing quotas more in line with actual supply”.
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