Opec output target unchanged

The Opec president says levels are comfortable

Opec ministers have, as expected, left oil production targets unchanged following a meeting of cartel members in Vienna.

"There doesn't seem to be any need for a change," said the Libyan oil minister Abdulhafid Mahmoud Zlitni arriving for the meeting in Vienna, Austria.

Earlier fears that a revival of Iraqi oil exports would flood the market and affect prices appeared premature.

Opec's president Abdullah bin Hamad Al-Attiyah told reporters the oil cartel would probably wait until its next meeting in September to make any adjustments.

"The option is open," he said.

"We expect in September to be more clear about the Iraqi situation."

Levelling off

Opec members produce a third of the world's crude oil, but some feared a sharp rise in Iraq's exports could unsettle the market and force members to curtail production.

Only a fool would bet on Iraqi numbers now Raad Alkadiri, PFC Energy

However, widespread looting and possible sabotage in Iraq's oil fields have curtailed Iraq's supplies and oil prices are at the top of Opec's target price range of $22 to $28 per barrel.

Opec ministers said they saw little reason to change their output at this stage, keeping their target quota level at 25.4m barrels per day.

"Inventories are a little low, but with Iraq coming to market by the end of this year, things will balance themselves out," said Libyan Oil Minister Abdulhafid Mahmoud Zlitni.

Some analysts suggested Opec might go the whole year without making any changes to its targets, if Iraq continues to struggle to rebuild its export levels.

"The market has proven very surprising this year and there's no reason to believe it won't continue to do so," said Raad Alkadiri from the Washington consultancy PFC Energy.

"Only a fool would bet on Iraqi numbers now."