OPEC summit avoids talks of oil production

OPEC summit avoids talks of oil production

Riyadh: OPEC leaders opened a two-day summit Saturday which could offer Iran and Venezuela the chance to grandstand against Washington but will avoid discussion about whether to raise oil output.

Saudi Arabia, a close US ally, will host Iranian President Mahmoud Ahmadinejad who is involved in a dispute with the US that has helped push oil prices to record levels.

The US suspects Iran wants to use its nuclear energy programme as a cover to build atomic bombs, a charge Iran denies.

Fears of a war in the region if the United States or its ally Israel stage an attack on Iran have helped drive world oil prices to nearly $100 per barrel.

Western consumer nations feeling the pinch from high prices have put pressure on the group to pump more oil. OPEC ministers say there is little it can do to help as factors beyond its control are driving the market.

The summit would leave any decision on whether to raise OPEC output to a meeting in Abu Dhabi next month, OPEC ministers said this week. The summit’s final communique will focus on a readiness to tackle climate change, long-term reliability of oil supplies and energy’s role in the developing world. “It will emphasise the role of OPEC countries and oil producers in mitigating global warming," said one delegate. But it was not clear if OPEC, which pumps more than a third of the world’s oil, would commit to providing money to fund research.

OPEC Secretary General, Abdullah al-Badri, said OPEC would be willing to play its part in developing carbon capture and storage technology.

In a closed session of foreign and finance ministers on Friday, Saudi Arabia objected to a bid by Iran and Venezuela to highlight concern over dollar weakness in the summit communique and the group voted the proposal out.

The drop in the value of the dollar against other major currencies helped fuel oil’s rally to a record $98.62 last week. But it has also reduced the purchasing power of the OPEC.