OPEC said to lift oil target in line with current output

At the OPEC meeting to be held on Friday at Vienna, a positive decision is expected relating to the production cuts and hence the price rise.

In view of the aforementioned, and emphasizing its commitment to ensuring a long-term stable and balanced oil market for both producers and consumers, the Conference agreed that Member Countries should continue to closely monitor developments in the coming months.

Instead, the organization's decision is likely to push the price of oil further south by endorsing present output, which is more than 1.5 million barrels a day above the formal ceiling of 30 million barrels.

When the so-called production ceiling was at 30 million barrels per day, OPEC data showed that the 12-member cartel had collectively pumped out 31.57 million barrels per day in September.

The movement came as a Reuters report suggested that the Organization of Petroleum Exporting Countries (OPEC) had decided against supporting falling crude oil prices, when representatives met in Vienna today.

"Saudi Arabia is adamant that any output cuts by the group needs to be accompanied by non-OPEC producers such as Russian Federation".

Oil producing countries seem to agree that output must drop.

Because of overproduction chiefly by Saudi Arabia and non-OPEC producers, there is now up to 2.5 million bpd of excess oil in the market which has caused crude prices to lose around 60% of their value since mid-2014.

Brent North Sea crude for January delivery, the worldwide benchmark for oil, fell to US$43.00 a barrel in London, down 84 cents (1.9 per cent) from Thursday's settlement. The ceiling was breached routinely by the group, Xinhua reported.

The production outlook appears to be a victory for Saudi Arabia, which has been under pressure from Opec's poorer members to cut output and help bolster prices.

In June previous year, crude had traded above $100 a barrel, but has since plunged on a global supply glut, weak demand growth and a strong dollar.

"Iran expects to put at least 500,000 barrels a day back into global markets next year, when the United States and other western powers are expected to lift oil sanctions against the Islamic Republic".

Indonesia's re-entry will "simply acknowledge the reclassification of Indonesian output from non-OPEC to OPEC production", said Julian Jessop, analyst at Capital Economics research group.

- He compares any potential efforts from OPEC members to restrict Iran's oil exports to "continuing sanctions against Iran".