OPEC is likely to decide this week whether or not to implement the raise in its crude production ceiling for the second time with consultation of the ministers of the cartel. The OPEC's first hike of about 500,000 bpd is likely to be effective from July 1.
OPEC agreed to raise its ceiling by about a half to 28-mil bpd from today is considering a second hike of the same amount if required. If a befitting need may arise the ministers are likely to decide in a month's time to implement the second increase in the ceiling.
OPEC is foreseen to be able to supply the global oil requirements even if demands rise further and the decision on the second rise in the ceiling is likely to be concluded this week. However it may not be needed as many feel that the problem does not lie in increasing production further, but in the structural problems that the market is probably facing, one of which is referred to as the refining problem. Boosting the output of oil alone is not considered to promote better market situations.
02-Jul-05 
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