Delegates from the Organization of the Petroleum Exporting Countries (OPEC) said they consider the current plunge in oil prices to be temporary adding that it will not deflect the cartel from its current policy of keeping output high to defend market share.
In November OPEC decided against cutting its production target of 30 million barrels per day (bpd) to buoy prices, seeking instead to defend market share against U.S. shale oil and other competitors. At its June meeting, the group reconfirmed the strategy.
This policy shift was led by Saudi Arabia, supported by its Gulf allies, despite calls for supply cuts from Iran and smaller producers worried about the influence of lower prices on oil revenue. The cartel is not holding any meetings until December 4.
While Iran desires to boost crude exports once sanctions are removed, Gulf OPEC delegates do not expect significant volumes before 2016 and are betting higher global demand next year will absorb the extra oil.
Meanwhile, Kuwait's oil minister, Ali Saleh al-Omair, expressed confidence in the outlook, saying producer countries were awaiting
stronger global economic growth to drive prices higher, Reuters reports.
Three delegates from OPEC members speaking this month said the price drop was unlikely to last and OPEC would not change the strategy, also citing expectations for stronger demand.
"I don't think so, it is not time for OPEC to change," said one Gulf OPEC
delegate.
"Demand will be more than in the first half (of the year) although there is some uncertainty about the economy. The prices will remain around $60."
