With oil trading at over $62 a barrel and fears of unrest in Nigeria mounting, the Organization of Petroleum Exporting Countries (OPEC) is unlikely to call for further cuts to oil production when the cartel meets in Nigeria next Thursday, The Wall Street Journal reported, citing senior OPEC officials.
"We don't have to do anything right now. This is our analysis of the situation," said a senior official of one major member of the 11-nation cartel to the Journal.
OPEC announced an output cut last November following relatively low price levels for the commodity and will be closely watching the price movements, ready to attempt to manipulate it with a production cut if an acceptable price level for the member counties is not maintained.
Following a muted reaction to last November’s output cut, speculation is rife about the ability of OPEC to successfully organize a cut. Several OPEC officials said a further meeting of the cartel is likely to happen in late January 2007 or early February to review output levels.