February 02, 2008	Saturday	Muharram 23, 1429

VIENNA, Feb 1: Oil cartel Opec maintained its output ceiling here on Friday, adopting a wait-and-see approach amid fears of a global economic slowdown that would dampen energy demand and further cool crude prices.

The Organisation of Petroleum Exporting Countries ignored US President George W. Bush’s recent plea for an increase in production to help reduce high oil prices that stunt economic growth and fuel inflation.

Fears of a US-led economic slowdown have sent crude futures crashing 10pc since striking record highs above 100 dollars a barrel at the start of January. However by Friday, they were still almost double the levels of a year ago.

“I don’t think the world should be concerned about a lack of oil. It should be more concerned about the financial crisis we are witnessing and its impact on world growth,” Opec conference president and Algerian oil minister, Chekib Khelil, told a press conference after the output decision.

The 13-member Opec, which accounts for 40pc of the world’s oil output, decided to keep its official daily production at 29.67 million barrels at an extraordinary meeting in the Austrian capital, insisting the market was well supplied.

The organisation was to meet again on March 5 in Vienna for a regular gathering.

Friday’s production freeze -- described by Nigeria as “a unanimous decision” -- was a snub to the United States.

Lower oil prices are not welcomed by crude producers as their export income drops. Saudi Arabia, the world’s biggest exporter of crude, is producing about 9.0 million barrels of oil per day, so even small changes in prices significantly affects the kingdom’s revenue.

“In view of the current (supply) situation, coupled with the projected economic slowdown, the conference agreed that current Opec production is sufficient to meet expected demand for the first quarter of the year,” it said in a statement.

OIL PLUNGES: Meanwhile, the world oil prices fell on Friday on more disappointing US economic data and Opec’s decision to freeze their production levels in line with market expectations, traders said.

New York’s main contract, light sweet crude for delivery in March, plunged $1.89 to $89.86 per barrel, after briefly rising into positive territory following the Opec decision in Vienna.

Brent North Sea crude for March delivery shed $1.70 to $90.51 a barrel.—AFP