Opec to maintain current output ceiling, seeks quota compliance. Oil prices excellent: Kuwait

<a href=www.arabtimesonline.com>Arab Times Online, DOHA, June 11, (Agencies): Opec announced Wednesday it will maintain its current production ceiling at least until July 31 when it meets in Vienna to discuss Iraq's return to the market, but urged members to comply strictly to quotas. "We agreed in April that the ceiling is 25.4 million barrels per day (bpd) from June 1," Opec President Abdullah bin Hamad al-Attiyah told reporters at the end of an extraordinary meeting of the group in Qatar. "Today we reconfirmed this agreement. We hope there will be no overproduction (above quotas) during this period," until July 31. Attiyah added that the 11-member oil cartel would do "whatever it can" for war-torn Iraq, adding it was difficult to predict when Baghdad would overcome its technical problems and resume exports. "We hope we can see a government in Iraq, an oil minister. Until then, we will continue discussing with Iraqi oil officials how we can collaborate." Attiyah said the Organisation of Petroleum Exporting Countries would do its "best to accommodate Iraq smoothly," treating it as a "unique" case in order to keep it within the group which was born in Baghdad 43 years ago. The US-British coalition ruling Iraq has said it would be up to the next Iraqi government to decide on remaining in the group also made up by Algeria, Indonesia, Iran, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela. In a statement released at the end of the meeting, Opec said stability has been "maintained in the market following the decision taken by the (Opec) conference in April 2003 to reduce actual production to 25.4 million bpd, with prices remaining within agreed levels." "Despite the fact that the market remains well-supplied, prices displayed an upward trend recently due to the slower-than-anticipated recovery in Iraqi production, coupled with unusually low stock levels," it said. "However, with low stock levels anticipated to be replenished during the third quarter, the conference decided to maintain currently agreed production levels, with strict compliance, and emphasised that continued vigilance in monitoring market developments is imperative over the coming period." Opec said it "welcomed the return of Iraq to the oil market" and looks forward to the country's resumption of its role in the organisation. "The conference again made its standing call on other oil producers/exporters to continue to cooperate with Opec in its endeavours to maintain market stability in the interests of all concerned." Attiyah said the group will meet in Vienna on July 31 even if Iraq does not resume exports, in order to "assess the market." He refused to speculate on the volume that could be eventually slashed by Opec on July 31 should Iraq resume exports, but hinted that non-Opec exporters would have to join in any potential cut. "Cooperation with them (non-Opec) is important," he said. Non-Opec states Angola, Mexico, Oman, Russia and Syria all took part in the Doha meeting as observers, underlining their commitment to cooperate with Opec. Kuwait Minister of Information and Acting Minister of Oil Sheikh Ahmad Al-Fahad Al-Sabah said Wednesday that the extraordinary meeting for the oil producing countries Opec launched in Doha will follow-up the international oil market. Sheikh Ahmad Al-Fahad told the press that the current oil prices are excellent, and within the Opec set range 22-28 dollars per barrel. Also: DOHA: Opec cannot permit Iraq to attend meetings of the group while Baghdad remains under the rule of an occupying US-led authority, oil ministers said on Wednesday. "We cannot have relations with Iraq until there is an internationally recognized government, that is a consensus," said Venezuelan Oil Minister Rafael Ramirez. "This does not mean we do not want Iraq in the organization. We do want Iraq in Opec and we think Iraq will want to stay in Opec because they will need a reasonable price for oil," he said. Ministers said the position, agreed during a ministerial meeting on Wednesday, was common to all international organisations that hold diplomatic status. "Opec is not a special case," said Opec President Abdullah al-Attiyah of Qatar.