OPEC Plans to Keep Production Unchanged

A wary OPEC said Monday that it would keep pumping crude at current levels and made clear that it would consider scaling back production if oil prices continued to fall.

The Organization of the Petroleum Exporting Countries pledged to “vigilantly monitor” the combination of rising inventories and easing political tensions that have pushed crude down by almost $13 a barrel since midsummer.

OPEC’s output quota will remain at 28 million barrels a day, the 11-nation group said, acknowledging that supplies were “more than adequate” to satisfy world demand.

Including Iraq, which is not bound by the quota system, OPEC’s daily production is about 30 million barrels.

But the group, which produces about 40% of the world’s crude, is keeping its options open. OPEC President Edmund Daukoru, who is Nigeria’s oil minister, said he would consult with other members “should market conditions warrant” action before officials meet again in December.

Light, sweet crude hit a record closing high of $77.03 in mid-July, just after fighting erupted in Lebanon. But the fighting has ended, and tensions over Iran’s nuclear program are easing amid talks aimed at averting United Nations sanctions.

Oil futures for October delivery settled Monday at $65.61 a barrel, down 64 cents.

Some OPEC ministers had suggested that prices shouldn’t be allowed to fall below $60. Daukoru said a consensus emerged about the optimal price but was evasive when asked what that was, saying: “It’s a marketplace. ... It cannot be specified.”

Analysts said one alternative to formally cutting production targets, which could unsettle markets and send prices soaring again, could be to have members informally pump less.