Attiyah: OPEC could hike output at March 11 meet

www.middle-east-online.com First Published 2003-01-21, Last Updated 2003-01-21 12:10:25

The oil market is under a lot of political and psychological motivations

OPEC President believes oil market will stabilize in coming months as oil prices climbing over $30/barrel.

DOHA - World oil markets have yet to respond to an OPEC decision to boost output and the cartel could therefore agree to a further production hike when it convenes March 11, OPEC President Abdullah bin Hamad al-Attiyah said Tuesday.

"All options are open," Attiyah said when asked if the Organization of Petroleum Exporting Countries could take further action to curb prices at a ministerial meeting in Vienna March 11.

Oil prices climbed above 30 dollars a barrel in London on Monday, apparently indifferent to OPEC's decision in mid-January to increase production by 1.5 million barrels a day from next month - a move taken to shore up market confidence in the face of international political tension.

"The problem is that the market is not receiving that," Attiyah, who is also Qatar's energy and industry minister, told reporters following the inauguration outside Doha of a new petrochemical plant.

"The market is under a lot of political and psychological motivations, such as Venezuela and Iraq."

Industry analysts have warned that war in Iraq and continuing labor unrest in Venezuela could deprive the global oil market of some five million barrels a day.

Attiyah, who stressed that OPEC is "watching the market very carefully," nonetheless added: "We believe it will stabilize in the coming months."