VIENNA, June 8, 2011 (AFP) OPEC members were locked in a tense meeting Wednesday amid clear divisions over whether the cartel should boost oil production to help revive flagging economic growth.
The Organization of Petroleum Exporting Countries (OPEC), which pumps 40 percent of global oil, must decide whether to raise production for the first time in almost four years to help out a slowing global economy and offset lost Libyan output.
Saudi Arabian oil officials, backed by Gulf producers such as Kuwait and the United Arab Emirates, are pressing for an increase of up to 1.5 million barrels a day.
But Ecuador, Venezuela, Iraq and Iran have all called for quotas to be maintained to preserve their precious oil revenues.
"There is still much uncertainty about the strength of the world economic recovery," said Iran's caretaker oil minister Mohammad Aliabadi, whose country holds the rotating OPEC presidency.
"Today, we shall look at developments in the international oil market since our last meeting in Quito on 11 December 2010," he said in his opening address.
"This period has been marked by high levels of volatility and an upward trend in prices.
"In short, it has been a nervous six months for the oil market. Throughout, however, fundamentals (of supply and demand) have remained sound.
"Very much due to OPEC's efforts, the world remains well supplied with oil, with ample spare capacity and adequate stock levels."
Aliabadi also blasted speculators who he insisted were behind recent sharp swings in the oil market.
"Excessive speculation in the futures markets increases volatility unrelated to fundamentals."
Questioned about whether the Iran was content with high price levels, he replied: "The market sets the prices."
Brent crude was trading above $116 a barrel in London on Wednesday, having risen more than 20 percent so far this year.
The 12-member OPEC has kept its output target at 24.84 million barrels per day (mbpd) since early 2009 but is currently pumping above this to compensate for lost Libyan supplies -- which limits its ability to raise output further.
UAE Energy Minister Mohammad bin Dhaen al-Hamli, speaking ahead of the meeting, said: "An increase (in the quotas) is an option, we'll discuss it today, we have many options.
"Today, yes, the market is well supplied but you have to look at the second half (of this year), it's going to be tighter. We have to look (at) economics."
But Venezuelan Energy Minister Rafael Ramirez argued that $100 per barrel -- was a "fair" price level for crude.
"We are going to discuss (an increase) but we don't believe it is necessary. We believe that $100 is a fair price."
The OPEC membership remains extremely wary of the global economic outlook, particularly in the wake of the eurozone debt crisis, Japan's nuclear emergency and the fading health of the global economy.
"OPEC is not about high prices, OPEC is about a sustainable global economy ... to make the economy grow, so that consumers are happy and producers are happy," said Goni Musa Sheikh, head of Nigeria's delegation.
Meanwhile, Libya's delegate was on his way to the meeting after arriving late at Vienna airport, according to a source familiar with the matter.
