Iran Governor: OPEC Thinks Non-OPEC Needs Output Limits
TEHRAN Oct 17, 2006 (Dow Jones Newswires)
The Organization of Petroleum Exporting Countries believes non-OPEC oil producers should constrain their supply growth, Iran's OPEC Governor Hossein Kazempour Ardebili said Tuesday, adding future oil growth should be divided between them.
He was reported by Iran's ISNA news agency as saying: "It is necessary for OPEC and non-OPEC producers to negotiate about the manner of dividing the 1.5 million barrels a day in extra demand for oil next year," a reference to projected growth by the group of global oil demand in 2007.
Non-OPEC producers - usually a reference to major oil exporters such as Russia, Mexico and Angola - should negotiate distributing growth with the 11-member OPEC Kazempour said.
Non-OPEC, he added, had met the bulk of global oil growth.
"But this trend can't always continue" he added, and non-OPEC producers must do more than give verbal support to balancing the market at OPEC meetings and instead deliver concrete action.
Non-OPEC states have been pumping crude without restraint and "this fact will put pressure on OPEC's share over the long run".
In its monthly oil report released Monday, OPEC forecast the implied need for its crude next year would shrink against this year by more than 2% to a little over 28 million barrels a day. Non-OPEC producers, it estimated, would enjoy a boost in conventional oil production of 3.5% to 53 million b/d.
Copyright (c) 2006 Dow Jones & Company, Inc.
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