OGJ Newsletter

Market MovementOPEC likely to boost productionThere was speculation at presstime last week that the Organization of Petroleum Exporting Countries would hike its new production quota by more than 1 million b/d on Jan. 12 in Vienna to offset the loss of oil supplies from Venezuela's strike and an imminent war in Iraq.Paul Horsnell, J.P. Morgan Securities Inc., London, said Saudi Arabia would push for an increase of 1.5 million b/d and "talk as high as 2 million b/d" before compromising on a lower figure. "Current (high oil) prices are seen as a problem, and Saudi Arabia is prepared to throw oil at that problem. Expect a compromise between the spare-capacity poor and the spare-capacity r...

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