OPEC kept its production target unchanged at 24.845 million barrels a day at its meeting last week. Output from the 11 members bound by quotas exceeds the group’s ceiling by 1.9 million barrels a day, or about the same as produced by Nigeria or Angola, the estimates show.
An oil price that is within the range of $75 to $85 a barrel isn’t hurting the global economy, El-Badri said. “What really concerns us is the value of the dollar because the member countries’ income is affected by this low level of the dollar,” he said.
The U.S. currency’s weakness means the “real price” of crude is about $20 less than current levels, Venezuelan Energy and Oil Minister Rafael Ramirez said yesterday.
The group agreed to a record 4.2 million barrel-a-day cut in production in late 2008 as global demand fell 0.6 percent, the first decline since 1983. Compliance reached a peak of 79 percent in March 2009, based on data compiled by Bloomberg.