OPEC is expected to continue with the current 28 million bpd ceiling when they meet on Wednesday to cool prices within the comfort zone for consumers and fill supply gaps in Nigeria and Iraq. A number of geopolitical factors to will make it difficult for OPEC to consider a change in production. Light, sweet crude for April delivery fell to US$61.58 a barrel on the New York Mercantile Exchange.
The lone OPEC member that supported a production cut of 50,000 bpd is Venezuela. But that call appears likely to be drowned out. Rebel attacks have knocked out about 20% of Nigerian output and the country has lost over 10.5 million barrels since January 1. Venezuela has yet to fully recover from oil worker strikes three years ago and Iran is struggling to sell its heavy, high sulphur crude that is difficult to refine.
08-Mar-06 
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