Monday 10 May 2010

UAE Oil Minister: OPEC Compliance Could Be Better - WSJ.com

UAE Oil Minister: OPEC Compliance Could Be Better - WSJ.com


United Arab Emirates oil minister Mohammad Al Hamli Monday said Organization of Petroleum Exporting Countries' compliance to production quotas could be better, contradicting other ministers who said adherence was good.

"It could be better," Al Hamli said at an energy conference in Doha when asked about the group's compliance levels.

Qatar's oil minister Abdullah bin Hamad Al Attiyah earlier Monday said he was "happy" with members' compliance, while Libya's oil head, Shokri Ghanem, said compliance "is okay now."

"It [compliance] is a little more than 50%. OPEC compliance is like the price in the market fluctuating according to speculation--when the prices go up some people produce more and when it goes down they produce less," Ghanem said.

According to the latest Dow Jones Newswires OPEC production survey, OPEC's 11 members that abide by the group's quota system have seen compliance slip since oil prices staged a recovery in early 2009, dropping to 49% in April from above 80% in March last year. Iraq is the only member outside the group's quota system.END

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