OPEC Maintains Output Ceiling at 30 Million Barrels Per Day

OPEC noted "continued concern over market volatility"

The Organization of the Petroleum Exporting Countries (OPEC) Friday said it would maintain its 30 million barrel per day output ceiling.

Commenting at OPEC's 167th meeting in Vienna, Austria over its rational for the decision, the cartel said it recorded "continued concern over market volatility and the challenges faced by the global oil industry as a whole," but that "the sharp decline in oil prices witnessed at the end of last year and the start of this year - caused by oversupply and speculation - had now abated, with prices moving slightly higher in recent months."

The Conference also noted that world oil demand is forecast to increase in the second half of 2015 and in 2016, with growth driven by non-OECD countries.

"On the supply side, non-OPEC growth in 2015 is expected to be just below 700,000 barrels per day, which is only around one-third of the growth witnessed in 2014," OPEC noted.

A Stable and Balanced Oil Market

The Conference also noted that "the market is comfortably supplied" with a recent build in stocks and the surplus of oil in both OECD and non-OECD countries putting stock levels "well above the five-year average in terms of absolute volumes."

"In view of the foregoing, the Conference resolved to maintain the 30 mb/d ceiling and urged Member Countries to adhere to it. Member Countries, in agreeing to this decision, confirmed their commitment to a stable and balanced oil market, with prices at levels that are suitable for both producers and consumers," said OPEC.

"Nonetheless, the Conference stressed that, given the current market uncertainties, the Secretariat should continue to closely monitor developments in the coming months."

Media reports Friday indicated the announcement left markets volatile and there had been investor concern that an increase in supply levels could push down oil prices.

However crude futures finished the day up, with WTI rising $1.13 to $59.13, and Brent making a gain of $1.28 to close the week at $63.31.

Also this week Iranian Oil Minister Bijan Namdar Zanganeh told OPEC "to open space for us if it wants prices to stay the way they are."