The Organization of Petroleum Exporting Countries (OPEC) held its crude output quotas unchanged at its meeting in Angola on Tuesday, warning of lingering weakness in the world economy. In New York, oil prices rose slightly in thin pre-holiday trade on Tuesday, ahead of weekly inventory data which is expected to show a draw in US crude stocks. The new front-month February contract for US crude futures rose 68 cents to settle at $74.40 a barrel, after earlier falling $1, pressured by a stronger dollar. In London, Brent crude for February rose 47 cents to settle at $73.46. Saudi Oil Minister Ali Al-Naimi said crude price levels were “perfect.” “Everybody is happy,” he told reporters. “We're happy with it ... because the investor is happy.” “The economic recovery has gathered pace,” the group's president, Angolan Oil Minister Jose Botelho de Vasconcelos, said at the start of the meeting. “The market remains well supplied. Prices have moved up to more comfortable levels,” he said as he welcomed ministers to the first OPEC meeting hosted by Angola. “However, the fragility remains in the market and we should not forget the detrimental volatility we experienced last year,” Vasconcelos added. OPEC said demand would grow by 0.82 million barrels per day (bpd) or 0.9 percent to average 85.13 million bpd, up slightly from its previous forecast for an increase of 0.75 million bpd. But growth would be driven by developing countries, with demand in industrialized or OECD (Organization for Economic Cooperation and Development) nations continuing to contract, it said. OECD oil demand was set to contract 0.28 percent in 2010 after falling by a record 3.9 percent in 2009. Last year was “one of the worst years,” with global demand estimated to have contracted by 1.39 million bpd or 1.6 percent to 84.31 million bpd, OPEC said last week. Meanwhile, Saudi Arabia has signed a deal to store “millions of barrels” of oil in commerical storage in Japan, Al-Naimi said on Tuesday. “Asia will be a huge market and this will be a big take off,” he told reporters. He said Saudi Aramco had been offered the commercial storage for no charge.
