8 March 2006, 13:44  OPEC to maintain output quota

OPEC was set to keep crude production at near capacity at its meeting here today owing to tensions in key oil producers Iran and Nigeria that have recently fuelled high oil prices. Qatar's Energy Minister Abdullah bin Hamad al-Attiyah, when asked if he thought the consensus between OPEC's members was to maintain output, replied: "I think so, yes." Kuwait's Energy Minister Sheikh Ahmad Fahd al-Sabah added Wednesday: "As Kuwait, I believe that the resolution today is to rollover with our production." The meeting of OPEC oil ministers was set to begin later Wednesday morning in Vienna, with a press conference planned for 4pm. OPEC normally tends to reduce its crude production during the second quarter in response to lower demand for heating fuel following the end of the northern hemisphere winter. World oil prices fell Tuesday owing to the prospect that OPEC will leave its quota untouched. New York's main contract, light sweet crude for delivery in April, lost 83 cents to close at 61.58 dollars per barrel. Last Friday the contract had risen at one point to 63.75 dollars as traders fretted over crude supplies in Iran. The OPEC meeting today comes at a time of market concern that Iran, the second-biggest producer of crude in OPEC, might slash its oil exports if it comes under UN sanctions over its nuclear programme. Also today, the UN atomic energy agency's 35-nation board of governors was due to hear in Vienna a key report on Iran's nuclear programme, which Tehran insists is for civilian energy use but the West fears is a cover to make atomic weapons. Another factor which has kept prices above the 60 usd mark has been unrest in Nigeria, where attacks by militants on the country's oil installations have forced a 20 pct cut in Nigerian crude production.

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