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Safari File Edit View History Bookmarks Window Help ezto.mheducation.com of Our Time Ex Day And Night | NEWS WIRE | MIMICKING MONOPOLY OPEC Keeps Oil Output Target on Hold, Predicts Low Prices VIENNA-OPEC decided to keep its oil output target on hold Friday and predicted prices would remain low for the foreseeable future-good news for both for oil-hungry intemational industries and consumers at the gas pump The cartel said its output level would remain at 30 million barrels a day despite the fact that prices were still low oompared with a year ago. With non-OPEC oil producing countries ready to ramp up production if prices go much above present levels, OPECs secretary general said the cost of crude will stay relatively low for a while. While the Organization of the Petroloum Exporting Countries accounts for over a third of the world's oil, ts power to determine supply and demand has been steadily eroding as outsiders capture large shares of the market. It gave up imposing quotas on individual members four years ago after these were consistently ignored. That has led to an overhang in recent months of more than 1 million barrels a day of OPEC production beyond the target. But the likelihood of continued overproduction persists OPEC powerhouse Saud Arabia is fighting to keep market share against U.S. shale oil, Iran plans to increase production in anticipation of an end to sanctions that have crimped its crude exports and other countries are trying to compensate for low prices by selling more OPEC realizes. that it is now in a highly competitive market, in which its own members will compete against each other and collectively against non-OPEC producers, and in particular shale producers," said John Hall of Alfa Energy in Announcing the decision to keep the present target, an OPEC statement urged members to adhere to it." But al-Badni, the secretary general, acknowledged that, as in the past, countries had only been assigned "indicators"-not quotas-in attempts to hew to the target In contrast, Saudi and Iranian comments Friday reflected the countries determination to produce what they decide "Production policy is a sovereign right," Naimi told reporters. Iranian Petroloum Minister Bijar Namdar Zangeneh, meanwhile, advised OPEC to make room for increased output fromm his country as early as the end of the month. That's the target date for a deal between Tehran and six world powers envisaging an end to sanctions on the Islamic Republic in exchange for curbs on its nuclear program Iran hopes to ramp up production by up to 1 milion barrels a day within a year once sanctions are gone, and Zangeneh said his country doesn't "need any decision from the OPEC side to return to the market, because it's our right OPEC powerhouse Saudi Arabia and their Gulf allies are best set to continue all-out producing-even though they, lke others, are selling at a loss But they can afford to do so The Saudi sovereign wealth fund stands at over $700 billion and the coffers of the other Gulf nations are also woll stocked. The Saudis, who effectsively set OPEC policy, were the prime drivers in the decision in November to keep the 30 million barrel-a day target, the seventh time in three years that the group opted for the status quo Sour OFEC keeps oil output target on hold predicts low prices." George Jahn. The Associated Press, Jun. 2015. Copyright ©

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The Organization of the Petroleum Exporting Countries (OPEC) is intergovermental cartel of 15 oil exporting nations that control , stabilizes, and ensures consumers and producers welfare and regular supply of oil and petroleum products.

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