Libya: OPEC will not raise production

A senior Libyan oil official said that his country is pleased with the current oil price, around $80 a barrel, adding that the Organization of Petroleum Exporting Countries (OPEC) is not expected to increase the production unless the price of barrel reaches $100.

These comments indicate that some of the organization’s members see no need to place a limit on the high oil prices, after the price reached its highest level in 15 months, to reach nearly $ 84 per barrel this week.

“With the price at the moment… We are satisfied” said Shokry Ghanem, the Chairman of Libya’s National Oil Corporation, “I do not think that an action is to be taken – I mean increased productivity- unless the price reaches $100, because of the rise and fall in the market price and it could reach $90 within a few days and then back down,” he added.

It’s worth mentioning that the organization decided to keep the level of production unchanged in their last meeting on 22 December. OPEC did not mention any change in its policy in 2009, after having a record cut in 2008 with the falling in demand and prices because of the economic recession.

OPEC does not have an official aim of prices, but many of the members agreed with the vision of Saudi Arabia, world’s largest oil exporter, that oil price between $70 and $80 is suitable for consumers, producers, and investors.

Ghanem pointed that there are no expectations for the price to reach $ 100 any time soon, and he did not want to look at this price figure as a way to push OPEC to change the cost, “I will not say that $100 is a line break.”

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