The New Nation - Internet Edition

AFP, London

OPEC, whose members together pump 40 percent of the world's oil, will very likely maintain output levels at a meeting in Vienna on Friday as crude prices slide on fears of a US recession, analysts said. They said the balance of opinion favours the status quo, with few members ready to countenance any increase in production, as called for by US President George W. Bush recently.

At the same time, reducing output does not seem a viable option at the moment although some producers are unhappy at the prospect of less revenue as prices fall. "We believe they are unlikely to hike output amid the threat to oil demand growth, rising US inventories and sub-90 dollars a barrel oil prices," said Sucden oil analyst Nimit Khamar.

President Bush, during a visit to the Middle East earlier this month, urged the 13-member Organisation of Petroleum Exporting Countries to increase output to help bring down prices, which soared to a record high above 100 dollars a barrel at the start of January. However since then, worries that recession may strike the world's richest economy and so undercut global demand for crude, have sent oil prices tumbling. On Monday, the price of New York light sweet crude ducked beneath 90 dollars as sliding world stock markets stoked fears of a US-led economic slowdown. New York crude now stands about 11 percent below its record high of 100.09 dollars struck on January 4.