KUWAIT CITY, March 13: The Opec oil cartel does not need to cut output at its meeting this week because the market is balanced, Kuwaiti Energy Minister Sheikh Ali Jarrah al-Sabah said on Tuesday.

Sheikh Ali’s remarks were echoed by the United Arab Emirates and by Libya, two other members of the Organisation of Petroleum Exporting Countries.

“We don’t see a need for reducing oil production at present. There is a balance between supply and demand and the price is good,” he said, quoted by the KUNA news agency.

He added that the key issue now is to prevent oil prices from fluctuating sharply, saying that would hurt both producers and consumers.

Analysts expect Opec to maintain its official production quota of 25.8 million barrels per day, when it meets in Vienna on Thursday.

In December, Opec decided to cut production by 500,000 bpd from February 1, following a reduction of 1.2 million bpd in November.

Opec’s move to slash production came after crude prices tumbled from record highs above $78 in mid-2006 to about $60.

The United Arab Emirates also expressed satisfaction with the state of the market.

“Currently, there is a balance in supply, demand and world commercial oil inventories,” Oil Minister Mohammed al-Hamili said, according to the official WAM news agency.

He said, however, that the cartel would “take suitable measures” to maintain balance in the market and stabilise prices, which could imply a further cut in production if needed in the future.

“Any slowdown in the world economy would negatively impact growth in demand for oil, and subsequently lead to a drop in prices,” he said, expecting a “seasonal” drop in world demand of around 1.7 million bpd in the second quarter of 2007.The same view on current market conditions was expressed by Shukri Ghanem, head of Libya’s national oil company

“Nothing justifies a reduction in the Opec production quota right now because the market is currently in equilibrium,” he told journalists in Tripoli.

He added, however, that Opec would “study supply and demand before taking a decision.”

Analysts said Tuesday that the market is weighed down by the fact that spring is fast approaching in the northern hemisphere, which means a cut in demand for heating oil.—AFP