OPEC 'agrees' to maintain oil output level

I / Vienna March 17, 2010, 17:28 IST

OPEC members have agreed to maintain the cartel's oil production ceiling in the face of recovering crude prices, de-facto group head Saudi Arabia said here today.

Ahead of an official announcement on output levels by the Organisation of Petroleum Exporting Countries, Saudi Oil Minister Ali al-Nuaimi said ministers had reached agreement on leaving production at current levels.

"There is no question: there is agreement, yes," Nuaimi said.

Asked what OPEC would formally decide at its ministerial meeting being held in the Austrian capital today, he told reporters: "To keep things as they are. We are very happy with the situation as it is."

OPEC's 12 member countries have in recent days pointed to high oil inventories, low demand and recovering crude prices for reasons why the cartel which pumps 40 per cent of the world's oil does not need to change its ceiling.

OPEC has had an official output level, excluding production by Iraq, of 24.84 million barrels a day since January 2009.

Asked if OPEC should change the ceiling, Nuaimi said today: "No. Absolutely not."