Opec to decide on more production

Riyadh is trying to prevent oil spiking to heights that might harm world economic growth and hit crude demand. US oil prices recently rose above $33 a barrel for the first time in two years. It was valued at $31.58 on Friday. Naimi said he could open the taps to 10 million barrels daily at just two weeks notice, some two million higher than estimated Saudi output in December.

“We can get to 10.5 right away but to maintain that level we need 90 days to formalise contracts for extra rigs with drilling companies,” he added of the kingdom’s full capacity. Other cartel members UAE, Kuwait, Nigeria and Algeria also held spare capacity, the minister said.

Naimi opposed any increase at Sunday’s meeting in formal limits for 10 member countries with quotas, because Venezuela is out of the market.

Delegates said ministers are likely to decide how much is missing from Venezuela and make clear they intend to reverse the addition once Venezuelan deliveries are restored. With no end in sight for the strike, that could be sometime. Ali Rodriguez of Venezuela blamed sabotage at oilfields, refineries and computer systems for the prevention of a swift return to production. Ministers from Kuwait and the UAE have said preliminary discussions focused on a 1-1.5 million bpd increase. But Saudi wants more. Naimi said that an increase of 1.5 million would not be enough.