Vienna-The Organization of Petroleum Exporting Countries (OPEC) chose during its Vienna meeting, on Thursday, not to change the production of crude oil, claiming that current production quantities were acceptable.
The organization was content with administrative changes by appointing Nigeria’s Mohammed Barkindo as its new secretary-general, replacing Libya’s Abdullah al-Badri.
Former OPEC Secretary-General Abdullah al-Badri said the organization could not agree on a new ceiling for oil production, asserting that such matter was “very difficult.” The current produced quantity is acceptable compared to the needs of the market, he said.
Following OPEC’s meeting, the market was not surprised to see no sudden change in the oil production ceiling. Earlier on Thursday, Saudi Arabia had expressed its faith that oil prices will continue reviving, which asserted expectations that the organization will not change its production of oil.
Saudi Energy Minister Khaled Al Falih said prior to the OPEC meeting that the organization was very satisfied with the oil market, adding that the return of balance to the market will improve prices.
“Everybody is satisfied with the market which now regained its stability,” he said.
Historically, the organization used to decrease production to push prices up. However, although prices dropped to more than $25 the barrel last January compared to a price of $100 in 2014, OPEC, headed by Saudi Arabia, has chosen not to decrease production.
Separately, OPEC agreed Thursday to appoint former head of the Nigerian National Petroleum Corporation Mohammed Barkindo as its new secretary-general, replacing Libyan Abdullah al-Badri, who has been heading OPEC since 2007. Ministers also decided on Thursday to allow Gabon rejoin the organization.