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OPEC expected to leave production levels unchanged

OPEC oil ministers are expected to keep their production targets unchanged at their meeting Wednesday.
By GEORGE JAHN, Associated Press Published: June 11, 2014
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— All is not well within OPEC as the oil cartel focuses on how much crude to pump for the rest of the year.

Kurds in Iraq are defying the central government and selling their oil directly abroad. Nigeria is hurting due to shale oil production in the United States, its most important customer.

While worrisome for the two countries, such problems may help global supplies. But there is trouble in production, as well. Sales from Iran, normally second only to Saudi Arabia, are severely crimped by sanctions. And internal conflicts and domestic chaos have slashed Libya’s exports.

The upshot is that OPEC oil ministers are likely to keep their production targets unchanged at their meeting Wednesday.

While the International Energy Agency, oil consultant to major consuming countries, sees demand rising for the rest of the year, many of the 12 OPEC members are at their production capacity limits.

Once again, that will leave it to OPEC powerhouse Saudi Arabia to make up for any shortage. The kingdom is now pumping less than 10 million barrels a day. But Saudi Oil Minister Ali Naimi said last month its total capacity is above 12 million barrels daily.

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