OPEC may keep output steady at meeting-Venezuela

Reuters, 06.04.03, 3:48 PM ET

CARACAS, Venezuela (Reuters) - The Organization of Petroleum Exporting Countries (OPEC) could keep oil production quotas unchanged when the cartel holds its next meeting on June 11, a Venezuelan energy official said on Wednesday.

Luis Vierma, Venezuela's Vice Minister of Hydrocarbons, said that while OPEC was ready to act to keep prices within its preferred price band of $22 to $28 a barrel during the Qatar meeting next week, it may not need to alter quotas to do so. "OPEC may not see the need to turn to a policy of cutting (output), as prices have stayed within the band, even WTI (U.S. West Texas Intermediate crude), so perhaps it will not be necessary," Vierma was quoted as saying.

U.S. light crude oil futures dropped 62 cents to $30.05 a barrel on Wednesday, following U.S. data which showed a build in petroleum inventories.

OPEC agreed in April to cut oil production by 2 million barrels per day (bpd) beginning June 1, after several cartel members earlier in the year increased output ahead of the invasion of Iraq.

Venezuela's Energy Minister Rafael Ramirez said last week OPEC could cut output by up to one million bpd should the producer group decide to reduce officials quotas to support prices.

Vierma said that Venezuela would also reduce output if the producer group decided to cut quotas, adding that Venezuela was already oil production was currently 100,000 bpd below its official quota.

The world's No. 5 oil producer has an official OPEC quota of 2.923 million bpd. PDVSA President and former OPEC Secretary General Ali Rodriguez and government officials have pegged output closer to 3.1 million bpd.