OPEC to hike output, Iran proposes compromise

[IDemo]

Source: Reuters

By Ramin Mostafavi and Alex Lawler

VIENNA | Wed Jun 8, 2011 7:49am EDT

Under pressure from consumer countries to contain fuel inflation, Saudi Arabia hopes to convince the Organization of Petroleum Exporting Countries to lift production by as much as 1.5 million barrels a day, Gulf delegates said.

They said that one option could be an initial one million bpd increase with a promise of another 500,000 bpd to come in three months time.

Iran offered to host an emergency meeting within three months to review policy, an Iranian source told Reuters.

Initial opposition to an increase from Iran shifted to a proposal for a modest 700,000-one million bpd increase during a closed session of ministers, the Iranian source said.

Read more: http://www.reuters.com/article/2011/06/08/us-opec-idUSTRE75715L20110608

[Purveyor]

1. UPDATE: OPEC Unable to Get Consensus on Output Quotas, El-Badri Says

By Ayesha Daya and Rachel Graham

June 8 (Bloomberg) -- OPEC ministers were unable to reach a decision on production quotas at their meeting in Vienna today, the group’s Secretary General Abdalla el-Badri said.

Oil prices rose in New York after ministers said there was no consensus on the group’s production limits, which have remained unchanged since the beginning of 2009.

“We are going to assess the market situation over the next three months,” Mohammad Aliabadi, Iranian acting oil minister and current OPEC President, said after the meeting.

OPEC is responsible for 40 percent of global supply. The producer group announced its biggest-ever output cuts in December 2008 amid a collapse in global demand, capping production at 24.845 million barrels a day for all members except Iraq, which is exempt from the quota system. The limit has remained unchanged since then.

MORE...

http://noir.bloomberg.com/apps/news?pid=20601087&sid=a2.sdMf0Wujk

BTW, crude oil is up $1.56 to 100.65 bbl :(

[IDemo]

2. But we haven't peaked, repeat, we haven't peaked...