OPEC Stands Pat on Quotas Amid Iraq War Fears
OPEC has decided to keep its oil production quotas unchanged, despite concerns over a potential war in Iraq and its impact on global supplies. The decision was made during an informal meeting between OPEC members in Vienna, with Algerian Energy Minister Chakib Khelil stating that there would be 'no change' in output quotas.
OPEC President Abdullah ibn Hamad Al-Attiyah of Qatar said emergency plans to boost oil output were not discussed, and Saudi Arabia's Oil Minister Ali Al-Naimi emphasized that his country had sufficient spare capacity to meet demand. Naimi stated that OPEC would 'make sure there is enough oil in the market' but saw no reason to suspend quotas.
The decision comes as US Energy Secretary Spencer Abraham announced that Washington would tap its oil reserves if a 'severe supply disruption' were to occur, with Abraham emphasizing that any decision would be based on an estimation of such a disruption. OPEC members have stressed their ability to compensate for any shortages during a potential war in Iraq.