OPEC Agrees to Maintain Oil Production Quotas at Record Level

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PEC ministers meeting in Caracas, Venezuela, Thursday agreed to keep production quotas unchanged at a record high level in an effort to ease prices, Bloomberg reported.

The cartel, whose members produce 40% of the world’s oil, may keep its output target at 28 million barrels a day through the end of this year because prices are supported by concern about potential supply interruptions, Bloomberg said, citing ministers.

The dispute over Iran’s nuclear program and disruption of supplies by Nigerian insurgents have kept oil at more than $70 a barrel for most of the past six weeks.

Crude oil futures closed at $70.34 on Thursday, down 95 cents from Wednesday, on the New York Mercantile Exchange. Oil reached a record $75.17 closing price on the Nymex on April 21.

Venezuelan President Hugo Chavez, who hosted the meeting and who has cited differences with the United States, said the floor price for oil should be $50 and that there should be “no ceiling” on prices, Bloomberg reported.

Venezuela is OPEC’s third-largest producer behind Saudi Arabia and Iran.