OPEC to Discuss Production Quotas

With crude prices comfortably within OPEC’s desired range, the group’s oil ministers should find few reasons to tinker with their production quotas when they meet this week to assess market conditions.

But energy analysts say they foresee too much uncertainty in the autumn for the Organization of the Petroleum Exporting Countries to feel confident for long.

Among the variables OPEC must consider in coming months are conflicting signals about the strength of the global economy, unpredictable shipments from Iraq and a possible surge in crude output from non-OPEC producers such as Russia and Norway.

OPEC supplies about one-third of the world’s oil, and its periodic meetings can have a big effect on the prices consumers end up paying for gasoline and other refined products.

For now, the OPEC ministers are almost certain to agree to maintain their official output level at 21.7 million barrels a day when they confer Wednesday at their headquarters in Vienna.

OPEC’s benchmark price for crude averaged $23.97 a barrel on Thursday, the most recent day for which the group compiled information. The benchmark price has stayed within OPEC’s desired range of $22 to $28 a barrel since March 11.