OPEC Not Expected to Cut Production

OPEC is unlikely to cut production when ministers gather Tuesday in Vienna to decide on oil policy, analysts and oil ministers said, as worries over disruptions of supplies from Nigeria and possibly Iran hang over the meeting.

Iran, which has been under international pressure over its renewed nuclear program, officially cites a buildup of excess supply as the reason for a cut. Venezuela, which consistently argues in favor of defending high oil prices, has said it would support such a move.

But that won’t find favor with Saudi Oil Minister Ali Naimi, one of the most influential voices in the Organization of the Petroleum Exporting Countries. On Sunday, as he arrived in Vienna ahead of Tuesday’s meeting, he told reporters that the cartel had no reason to cut its output at this meeting or in 2006. “Absolutely not,� he said, when asked about a possible cut.

Algerian Oil Minister Chakib Khelil said Saturday that OPEC would maintain its current production quota. High demand from the United States and China as well as shortages of refining capacity were underpinning the market price, he said -- not supply shortfalls.

“There is a consensus with the member countries to maintain the current quota as there is enough oil in the market,� Khelil said. “I expect a barrel at $50 at least for the second quarter of the year.�