OPEC production increase doubtful

By Alan Fein

(AXcess News) New York - A production increase by OPEC ministers is growing doubtful according to sources in Abu Dhabi were the cartel's ministers are set to meet tomorrow. Still, futures prices in New York continued moving lower by midday with crude oil down $1.81 a barrel.

A spokesperson for the cartel told AXcess News affiliate, EU News Network, that there was plenty of oil available but that buyers were not lining up to take it, suggesting that supplies were adequate and that because there was no demand the OPEC ministers were most likely not going to raise production output tomorrow when they meet in Abu Dhabi.

OPEC's basket price of twelve crudes stood at $84.28 a barrel Monday, down $1.63.

While OPEC's ministers are less likely to increase oil production, most agree that the housing collapse in the United States has added to the slowdown in demand for energy. But at the same time, Middle Eastern investors are moving into the US market to buy stock in the financial sector. Cheaper oil is not expected to help curb investor sentiment towards the financial sector and this morning stocks moved lower as a result.

But despite the collapse of the US subprime mortgage market oil ministers are concerned over the US economy overall and are keeping an eye on consumer spending. Saudi Arabia, which is OPEC's largest producer, has not said whether it will recommend increasing production levels tomorrow when the cartel meets, though last week Saudi Arabia's oil minister did say that was pumping more oil now than ever before while he was in Singapore.

Earlier today, Saudi oil minister Ali al-Naimi told reporters in Abu Dhabi that "all options are open".