Chances increase for OPEC output cut

Senior members of the Organization of Petroleum Exporting Countries informed that the oil cartel will likely decide to cut oil output at its December 14 meeting in Vienna.Reuters reported last week that industry observers said a cut in output was unlikely to find support among the Persian Gulf Arab OPEC members while oil prices remain well above $100 a barrel, but Iraq joined Iran, Venezuela and many others who have all called for a decrease in production quotas. Iraq's Oil Minister Abdul-Kareem Luaibi said the organization should cut. The Iraq's Oil Minister told reporters that he expects oil prices to trade between $100 and $120 a barrel, which is "reasonable" and "acceptable" for Iraq.Iran aims to persuade OPEC members to return output production to levels before they were raised earlier this year in response to the Libyan crisis. Iran along with African producers and Venezuela, blocked a Saudi-led proposal to increase output targets at OPEC's last meeting on June 8. But, very recently Saudi oil minister also expressed views very close to that of Iran. After the overture in the Saudi views on production, Iran's OPEC Governor Mohammad Ali Khatibi said members are closing gaps. The 12-member group had in its latest Monthly Oil Report stated that its forecast for global oil demand growth in 2012 remained unchanged at 1.2 million barrels a day mb/d, but noted that uncertainties in the world economic outlook for the coming year have increased due to the challenges facing the Organization for Economic Cooperation and Development (OECD) economies. The group also projected global oil demand growth at 900,000 barrels per day in 2011 - unchanged from its September figures, noting that demand in industrialized nations is seen dropping further "as a result of slowing economic momentum, particularly in the (European Union)." OPEC's forecast for world economic growth in 2011 also remained unchanged at 3.6per cent, while the forecast for global growth in 2012 had been revised down from 3.7per cent to 3.6per cent. World oil demand growth in 2011 was forecast at 0.9 mb/d, unchanged from the previous report. Despite the emerging winter season, OPEC said OECD oil demand was expected to see a further contraction as a result of slowing economic momentum, particularly in the EU. The forecast for global oil demand growth in 2012 also remains unchanged at 1.2 mb/d. However, uncertainties in the world economic outlook for the coming year have increased due to the challenges facing the OECD economies.