OPEC leaves oil output unchanged

The 12-nation Organization of the Petroleum Exporting Countries (OPEC) has decided to leave the member states’ production quotas unchanged.

OPEC oil ministers made the predictable decision after reviewing the oil market outlook during a meeting in the Ecuadorian capital, Quito.

“The increase in the annual average oil demand in 2011 is likely to be lower than in 2010,” OPEC said in a final statement on Saturday.

“This expectation of lower demand growth is coupled with challenging risks to the fragile global economic recovery, including the adverse effect of possible currency conflicts and fears of a second banking crisis in Europe, all of which would negatively impact on oil demand,” OPEC said.

“With the Organization for Economic Cooperation and Development (OECD) still facing lower industrial output, lagging private consumption as well as persistently high unemployment, and with ample spare capacity throughout the oil supply chain, the conference agreed to maintain current oil production levels.”

OPEC members have pumped 24.84 million barrels per day since 2009.

At the end of the meeting, Ecuador’s minister for non-renewable energy, Wilson Pastor, handed over the rotating presidency of the 12-nation group to Iranian Oil Minister Masoud Mir-Kazemi.

OPEC ministers, however, have differences about the organization’s reaction to $100 per barrel oil in the future.

Mir-Kazemi said that Iran, similar to Venezuela and Libya, favors 100 dollars for a barrel of oil.

But Saudi Arabia wants an oil price of 70-80 dollars per barrel.

This is while on Friday, the International Energy Agency (IEA) predicted stronger-than-expected oil consumption by North America and emerging Asian economies in 2011 that could force OPEC to increase output “if prices continue their relentless rise.”

The IEA predicted 88.8 million barrels a day increase in global oil consumption next year.