Sunday, May 21, 2006

Iran says OPEC won't change output ceiling - ISNA

Iranian Oil Minister Kazem Vaziri-Hamaneh told the students' news agency ISNA on Friday; "OPEC's production ceiling will not change," he said, adding that he did not expect any movement despite the onset of a peak summer period of consumption by U.S. drivers.

"I believe that oil prices will not become three digits in the future," the minister said in reference to $100 a barrel.

The ceiling for the 10 OPEC countries bound by quotas is 28 million barrels per day (bpd). In April, those 10 countries pumped 27.81 million bpd, according to a Reuters survey.
Iran pumped 3.85 million bpd, compared to its quota of 4.11 million bpd.

The number of people travelling in the United States in the coming Memorial Day weekend, traditionally seen as the start of peak driving season, will rise by the smallest amount in four years, the U.S. auto industry group AAA said on Thursday. They believe this will due to the higher gasoline prices.

I suspect that this will be proved wrong as we hit the summer months. I don't think people will change their driving habits just yet, the price isn't high enough to deter most drivers, also as we get the hotter weather, especially here in Europe, I think there will be a substantial rise the use of air conditioning. I also believe the reason the oil companies aren't reaching thier quota total is because they no longer can, if they could, they would pump as much as it was humanly possible to do.

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