OPEC ministers due to arrive here for their meeting on March 17 say there is no need to change output targets with oil prices above their preferred range, but soft demand is prompting calls to curb overproduction. “In my opinion, I don't think we are going to see any change, even though inventories are high,” Qatar's Oil Minister Abdullah al-Attiyah told Reuters by telephone on Monday. “The oil price and fluctuation is one of the many reasons that would lead to a rollover in supply targets.” Benchmark U.S. crude futures were trading just shy of $81 per barrel on Monday, a fraction above the $70-80 range that OPEC's top producer Saudi Arabia has named as a fair price for both producers and consumers of oil. OPEC last agreed to cut output in December 2008, slashing a record 4.2 million barrels per day (bpd) from production to 28.48 million bpd as the world reeled into recession. In the past year, rising prices and a hesitant global recovery have encouraged OPEC members to add supply to the market, however. In February, OPEC delivered just 53 percent of pledged output curbs of 4.2 million barrels per day that it agreed in late 2008 -- down from 81 percent a year ago. High inventories showed there was no shortage of crude in the market, Attiyah said, and OPEC will discuss adherence to existing supply curbs. “We need very strong compliance,” he said. “If we say rollover, it means with existing targets.” Forecasts from OPEC as well as the International Energy Agency (IEA) and the US government all suggest demand has been better than expected and could continue to rise this year. “If you take the average forecast for OPEC demand, you're looking at 29.2 million bpd, which is in line with production. That's an indication that things will be the same until the end of the year,” one OPEC delegate said.
