Some OPEC members want to suspend quotas Nigeria

Lagos, Aug 4 | Updated: Aug 5 2005, 05:30am hrs
Some OPEC members want to suspend quotas and allow a production free-for-all to help cool record high oil prices, but Nigeria favours keeping formal limits, Nigerias top oil official said on Thursday.

The oil cartel, which is due to discuss output policy at a meeting in September, could decide to increase quotas even though many members are already pumping at full tilt, or leave them unchanged, said Edmund Daukoru in an interview with Reuters. Simply to produce flat out, let everybody produce what they can, that has tended to be an internal view of some of my respected members, but at the end of the day we have always ended up fixing a number, Daukoru said by telephone from the capital. Daukoru said earlier this week that he did not favour any increase in quotas before the September meeting. Asked about the options for next months OPEC conference, he said: We will have to weigh the wisdom of calling a number we will not be able to meet, versus just being prudent and roll over. A cut is not on. You can scrub that off the slate. The latest spike in oil prices, which saw U.S. futures hit a new record high of $62.50 a barrel on Wednesday, was largely driven by shortages in refining as opposed to crude supply, Daukoru said.

Reuters