OPEC Keeps Production Quotas Steady

OPEC members on Thursday agreed to hold oil output steady and to wait until September before making any changes in their production quotas, news services reported.

The oil cartel decided not to lower its daily production ceiling of 25.4 million barrels, despite previous fears that a revival of Iraqi crude exports might upset the oil market and erode prices. The decision was widely expected by analysts, the Associated Press reported.

Following the decision, the price of crude oil in New York rose slightly to about $31 per barrel, Bloomberg said.

OPEC supplies about a third of the world's crude. Iraq is one of the group's 11 members but hasn't participated in OPEC production quotas since 1990.

Looting and sabatoge have delayed Iraq's return to the market, and with prices hovering near the top of OPEC's targeted price range, the group decided that its best policy for now was to continue pumping at current levels, AP said.

OPEC also said that it was concerned a slow economic recovery might prevent demand in 2004 from growing as quickly as available crude supplies.

Earlier Thursday, the cartel had a private breakfast with representatives from Russia, Angola, Oman, Egypt and Syria. OPEC received assurances from the five that they would act in concert with the cartel and restrain themselves from ramping up production to take advantage of current high prices, Reuters said.