OPEC to keep oil output steady

? OPEC members have agreed to hold oil output steady and to wait until September before making any changes in their production quotas, the cartel announced Thursday.

In a widely expected decision, the Organization of Petroleum Exporting Countries decided against lowering its daily production ceiling of 25.4 million barrels, despite earlier fears that a revival of Iraqi crude exports might upset the oil market and erode prices.

Chronic security problems have delayed Iraq’s return to the market, and with prices hovering near the top of OPEC’s targeted price range, the group decided that its best policy for now was to continue pumping at current levels.

“The market is stable and well-supplied,” with prices fluctuating at a comfortable level, OPEC said in a communique.

However, the group expressed concern that a slower than expected economic recovery might prevent demand in 2004 from growing as quickly as available crude supplies.

OPEC’s decision would have little effect on consumer prices for gasoline and other refined products, said Edward Morse of Hess Energy Trading Co. in New York. The group announced its agreement after 2 1/2 hours of private talks at a hotel in downtown Vienna.

OPEC supplies about a third of the world’s crude. Iraq is one of the group’s 11 members but hasn’t participated in OPEC production quotas since 1990.

OPEC delegates had a private breakfast meeting earlier Thursday with representatives from Russia, Angola, Oman, Egypt and Syria. OPEC received assurances from the five that they would act in concert with the cartel and restrain themselves from ramping up production to take advantage of current high prices.

The price for OPEC’s benchmark blend of crudes is almost $28 a barrel — the upper limit of its targeted range. September contracts of U.S. light, sweet crude were trading 17 cents higher at $30.85 a barrel in New York. In London, North Sea Brent crude contracts for September delivery were trading 24 cents higher at $28.74 a barrel.

Tight oil inventories in the United States and other importing nations have strengthened OPEC’s market position.

Abdullah bin Hamad Al-Attiyah, president of the Organization of Petroleum Exporting Countries, attends a press conference after private meetings of the oil ministers of OPEC in Vienna. Members of OPEC decided Thursday to leave oil output steady.