The heads of oil cartel OPEC are expected to leave their output quota unchanged when they meet tomorrow in Algiers to discuss oil output and prices. US light crude futures rose 7c to USD32.55 per barrel this morning ahead of the meeting, but were well down from the USD36 level hit during a cold spell in the US last month. Brent crude in London rose 18c to USD29.01. The 11 members of OPEC are likely to leave output unchanged at 24.5 million barrels per day as they expect oil prices to decline in the second quarter as winter demand eases.
The group is also expected to call on its members to rein in output above official limits, which are estimated to be running at 1.8 million barrels a day. OPEC should "definitely take some steps" to rein in production, at least to curb output that is exceeding the cartel's current quotas, Algerian Oil Minister Chakib Khelil said today in response to questions from reporters. //www.fxcentre.com