OPEC Unable to Reach Consensus; Outcome 'Unwelcome' by Some Members

VIENNA (Dow Jones Newswires), June 8, 2011

In a decision that surprised oil markets and sent oil prices higher, OPEC officials said Wednesday the group had failed to reach consensus to boost output.

"Unfortunately, we are unable to reach a consensus at this time to reduce or raise our production," OPEC Secretary General Abdalla Salem el-Badri.

Iranian Oil Minister Mohammad Aliabadi, who is also serving as president of the producer's organization, said the decision was "unwelcome" by some members.

Gulf delegates have been pushing in recent days for an increase of 1-1.5 million barrels a day. But some other OPEC members have criticized the plan, arguing that the global oil supplies are sufficient and that today's prices of $100-$115 a barrel are appropriate.

El-Badri said there was no shortage in the market. The decision means OPEC members will keep their current output unchanged.

Copyright (c) 2011 Dow Jones & Company, Inc.