OPEC could maintain output level, even as oil prices hover at record highs

05-Mar-08

OPEC seems to have decided to maintain its official oil output level at 29.67 million barrels of oil at a meeting to be held at Vienna on Wednesday. This could amount to ignoring pleas from USA to raise production to help cool record-high crude prices threatening to dampen economic growth. New York crude struck an all-time peak of US$103.95 per barrel on Monday as the US currency dived to a fresh low against the euro. In fact, OPEC members Algeria, Iran and Venezuela have called for a cut in production, as demand for heating fuel is expected to dampen during the second quarter as warmer temperatures hit Europe and the United States.