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Nigerian Presidential Adviser on Petroleum and Energy Edmund Daukoru said in Abuja Thursday that the Organization of Petroleum Exporting Countries (OPEC) would likely cut supply of crude during its March 16 conference of ministers in Iran.
"If we have to cut any supply, it has to be a modest amount, an adjustment cannot be more than 500,000 barrels," he said in the Nigerian capital Abuja.
According to Daukoru, the OPEC is comfortable with the current level of 27 million barrels supply to the world and unless something extraordinary happens there would not be a major change.
The price of crude hovers from US$50 to 51 per barrel this week, up from US$45 to 47 last week.
The high cost of the commodity was a result of high demand of heating fuel due to cold wave in the United States and Europe.
The presidential aide said future capacity of the OPEC has to be secured now by way of putting more investment into crude exploration and production.
"OPEC has the capacity for additional oil but huge investment is required to be able to expand the capacity of the organization," he said.
Daukoru expressed optimism that the organization would come up with a new price band in Iran.
"A higher OPEC price band is undoubtedly in the interest of the organization," he said.
He said the future of OPEC looks bright, given the high demand of oil in the world and a weak US dollar.
(Xinhua News Agency February 25, 2005)
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