OPEC president says cartel likely to keep output ceiling

KUWAIT CITY - OPEC president and Kuwaiti Energy Minister Sheikh Ahmad Fahd al-Sabah said on Saturday the cartel was likely to maintain its output ceiling during its March 16 meeting in Iran despite soaring prices.
"I think we will continue with the same ceiling" of 27 million barrels per day (bpd), Sheikh Ahmad told reporters when asked what he expected OPEC to do when it meets in the Iranian city of Isfahan next week.
"We have to be very careful because there is still overproduction," he said.
But Sheikh Ahmad also said that the 11-nation cartel would "study the market situation with the aim to stabilize prices and market supply."
Crude oil prices resumed their upward trend Friday after the International Energy Agency predicted global demand in 2005 would be stronger than earlier forecasts.
New York`s main contract, light sweet crude for delivery in April, gained 89 cents to 54.43 dollars a barrel in closing deals.
In London, the price of Brent North Sea crude oil for delivery in April added 44 cents to close at 53.10 dollars.
The IEA said it expects demand growth of 2.2 percent -- or 1.8 million barrels per day -- from its previous forecast of a 1.8 percent increase.
The report said demand for oil in 2005 would be 330,000 barrels per day higher than expected because of cold weather, expected robust growth in the United States and consumption in China.

03/12/2005 12:11 GMT