OPEC to Consider Production Hike

Citing delegates within the organization, Reuters says OPEC ministers may raise oil supply targets by between 1 million to 1 ½ million barrels per day. The aim would be to keep high energy prices from hobbling the still troubled world economy.

“I think at this point, OPEC’s production target is more symbolic than real.”

Amy Myers Jaffe, director of the Energy Forum at Rice University’s Baker Institute.

“Most countries are producing what they want to produce or are willing to produce or can produce, and the only significant event for the oil market is whether Saudi Arabia is going to put more oil on the market.”

Jaffe says economic conditions in the U.S. and China and instability in the Middle East will play a greater role than OPEC supply targets in determining the price of oil in coming months.  OPEC last raised its production targets in 2007.

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