Nigeria's oil minister, Rilwanu Lukman. Photo: NEXT

OPEC may hike output, says Lukman

REUTERS

OPEC could decide to raise oil output slightly at its ministerial meeting next month if there were to be a substantial rise both in oil demand and prices, Nigeria's oil minister, Rilwanu Lukman, said on Thursday.

Asked on the sidelines of an oil and gas industry conference in London what the 12 members of the Organisation of the Petroleum Exporting Countries (OPEC) will decide at their next meeting in Angola on December 22, Mr. Lukman told reporters:

"If prices remain firm and demand remains healthy, then maybe we don't want to upset the market. But if demand increases materially and prices shoot up, then maybe we'll put in a little bit more."

Lukamn said OPEC is unlikely to cut oil production as long as oil prices stay at current levels. "I would not think there will be a production cut given the current oil price," he said. "A cut at this price, I think not."

Benchmark U.S. crude oil futures are now trading around $79 per barrel, having rallied from a low of $32.40 in December of last year.

Prices hit a record high of almost $150 per barrel in July last year before collapsing, as demand for fuel dried up during the global economic slowdown.

Asked if the oil market was oversupplied, Lukman replied: "Prices would not be at this level if the market was oversupplied."

OPEC agreed on a series of oil production cuts last year in an attempt to stabilise the market but output of several OPEC members had gradually risen above their production targets this year as the oil price has risen.

Nigeria is one of several countries accused of producing more than its output target and Lukman was asked whether he believed his country's output target should be higher.

"All countries always want extra quota limits," he replied. "We are within our current quota."

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Reader Comments (1)

Posted by FADUMIYE ADEYINKA on Nov 20 2009

I believe Mr Lukman Rilwanu is making a move to decieve Nigerians about the upward review in the globa oil price.I'm an International oil player and also a seasoned state actor in the oil & gas industry and with the latest slit change in the sector,it quite Obvious that OPEC will never make an amend toward increasing the price of fuel.However,it is a game plan by the Ya'adua administration to increase the price of petrol in Nigeria to #150 per liter.These development is highly unaceptable and absurdity in all it forms and ramification.Therefore the masses in the Nigerian state must rise aganist this challenges because the Ya'adua administration is an heartless and irresponsible government because in view of the economic recession no any responsive government in the world would increase the financial burden of government on her citizens.I urge the civil society organisation,the Nigeria Labour Congress and the Trade Union Congress to prevail on president Ya'adua and the stupid old cargo Mr Lukman Rilwanu to stop the allege plan by the federal government to sabotage the Nation Economy at the expense of the downtrodden masses in the Nigerian state.The Kaduna & Warri Refinary which the federal government promised to make operational this month is another decit from the stable of Ya'dua administration because the level of work in the both refinary is unheard and I appeal to Nigeria to remain calm over the insincerity of the Ya'adua administration.Deregulation of the Down stream sector of the nation economy is an exercise in futility because the necessary non state actor which is the masses were not be carried along with the proposed Deregulation.It now crystal clear that the whole exercise is a political malfeasance from the stable of pdp aka the "nest of killers"