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OPEC will not boost output
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June 8, 2000: 10:33 a.m. ET
Cartel has no immediate plans to raise output ahead of June 21 meeting
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LONDON (CNNfn) - OPEC has no immediate plans to increase oil production to bring down the cost of crude, but is considering the long-term effects of the current oil price.
OPEC Secretary General Rilwanu Lukman said Thursday cartel President Ali Rodriguez had not sought an increase in the cartel's oil production and was closely watching developments before a June 21 meeting in Vienna.
Rodriguez, president of the Organization of Petroleum Exporting Countries, which supplies more than 40 percent of the world's oil, has gone on record as saying the cartel will adjust prices by raising or lowering supply by 500,000 barrels per day if the 20-day average price of a basket of OPEC crude oils moves above a $22-$28 per barrel set by an informal stability pact.
The daily average rose to $28.44 a barrel on Wednesday, bringing the 20-day moving average to $28.08. Brent crude for July delivery fell slightly to $29.04 from $29.22 in mid-afternoon trading Thursday in London.
The OPEC secretariat is working on detailed supply and demand reports for oil, including refined products, which would be presented at the June 21 meeting. "These reports will enable the ministers to have a complete picture on which to base any decisions they might be considering," Lukman said.
OPEC analysts believe Saudi Arabia, the cartel's largest producer, wanted to maintain control over any supply decisions through discussions with other members.
"The kingdom is opposed to an automatic OPEC supply trigger mechanism that obviates discussion among member states regarding the specifics of timing, volumes and crude market conditions," said Washington's Petroleum Finance Corp in a note to clients.
OPEC is an organization of oil producing and exporting countries. Its members are: Algeria, Libya, Nigeria, Indonesia, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. 
--from staff and wire reports
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