The conflict underlines the difficulties the 50-year-old organization, which accounts for about 40 percent of the world’s oil, may have in deciding production levels. Oil has gained 9.5 percent this year to trade at about $100 a barrel amid signs that the pace of the global economic recovery may be slowing. The Organization of Petroleum Exporting Countries will probably leave its output target unchanged on June 8, according to a Bloomberg survey of 30 analysts conducted May 24-31.
“Amid issues surrounding representation of Libya and oil prices correcting towards $100 a barrel, OPEC is likely to sit on the fence, deferring a decision on quotas for later,” Harry Tchilinguirian, the head of commodity-markets strategy at BNP Paribas SA in London, said in an interview on June 1. “This does not mean individual countries may not take discretionary steps to increase output. OPEC has yet to fill the gap in the market left by Libya.”
OPEC will need to boost output to 29.9 million barrels a day to meet average demand this year because of “roaring” growth in China, the group said in its most recent monthly report. That’s 1 million barrels a day more than last month, according to data compiled by Bloomberg. The International Energy Agency said on May 19 that it saw “an urgent need” for more oil to help bring down high prices threatening economies.
OPEC Overshadowed by Qaddafi in Most-Hostile Meeting Since 1990 Gulf War - Bloomberg