By the OGJ Online Staff
LONDON, Sept. 27 -- The Organization of Petroleum Exporting Countries confirmed Thursday it would not change its present oil production quotas to firm prices.
The oil ministers said they would meet again in Vienna Nov. 14 to review the oil market situation and "cut output at that time if necessary."
OPEC formally announced the agreement, which had been reached during discussions on Wednesday, explaining that it delayed making its announcement until other economic and political matters had been discussed. Observers said the organization thinks that by Nov. 14, US military intentions towards terrorist organizations will have become clearer.
The organization also expressed condolences to the families of the victims of the Sept. 11 terrorist attacks on the US. It said, "The impact of the disaster on the international oil industry will be profound, particularly in the context of the global economic slowdown and its implications for energy demand."
Observers said OPEC is aware that any actions taken at the present time would only add to market volatility.
Leo Drollas, chief economist for the Center for Global Energy Studies, said OPEC members are also concerned about being perceived as insensitive to current events if their actions push prices upward. He said, "They don't want to be seen as trying to gain from the misfortunes of others."
Oil prices in London and New York are trading within OPEC's target range of $22-$28 for November delivery, although the average price for OPEC's own basket of seven crudes remained below that level for 3 consecutive days at $20.11/bbl Wednesday.
Some traders are predicting that OPEC's inaction will serve to drive down prices on the market. Conversely, other traders predict that oil company share prices, which were firm in trading in London Thursday, will remain attractive.