Iran's OPEC Governor: OPEC Members Oppose Increase in Production.

Iran's OPEC Governor: OPEC Members Oppose Increase in Production.(Fars).OPEC members believe there is no shortage in oil market and that is why producing oil beyond the official ceiling of 30 million barrels per day is not justified, Iran's Governor at the Organization of Petroleum Exporting Countries Mohammad Ali Khatibi stressed.Khatibi told the oil ministry's website, Shana, that during the recent meeting, members of the oil cartel expressed concern on excessive oil supply and called on the member states to adhere to the organization's agreed production ceiling. He further said during the meeting it was emphasized that it is necessary those OPEC members that had raised their oil production reduce oil production in order to prevent surplus and restore stability to the oil market.
 Khatibi noted that world oil consumption had not increased which is due to the impact of economic crises in the United States and Europe, so the surplus has not been absorbed by the oil market but has flowed into stockpiles in oil consuming countries and in some cases has been stocked by oil producing countries. OPEC members reviewed different projections on oil demand and supply in the second half of 2012, Khatibi said adding oil market situation was also reviewed in 161st meeting of OPEC on 14th June. "OPEC estimates average daily oil demand from the organization will be at 29.9 million barrels in 2012 which is lower than the official OPEC production ceiling at 30 million barrels per day the members agreed on in December 2011," the official noted. Iran's OPEC governor said, "Based on the reports presented to the 161st meeting of OPEC, demand for OPEC's oil will reach 30.9 and 30.6 million barrels per day respectively in the third and the forth quarters of 2012." On the current level of oil storage in floating storage facilities and in land, the official announced that OPEC reports show that the amount of storage is higher than past year levels. According to Khatibi the second letter is related to some OPEC members' remarks saying oil prices should come down to foster growth in the world economy, which is not acceptable. "The Islamic Republic of Iran in its letter to OPEC has criticized the unilateral actions by some members for destabilizing the oil markets," Khatibi said. On choosing OPEC's Secretary General, Khatibi noted that OPEC members discussed the issue but did not reach consensus so they will examine the issue in the next ministerial meeting in December.Read the full story here.