OPEC President sees output at current levels
Despite a surplus of oil supplies, the OPEC president advocates keeping production levels at a 25-year high.

MILAN (Reuters) - OPEC countries should maintain oil output at current levels despite a surplus of supply but may trim production later, OPEC President Edmund Daukoru said in an interview with an Italian newspaper published on Saturday.

"There is a 2.5 million barrel per day surplus of supply on the market. However, the preferred solution would be to maintain production at the current levels. Then the trend would be to correct production with cuts," Daukoru told financial daily Il Sole 24 Ore.

OPEC, provider of over a third of the world's oil, decided last month to keep its production limit at 28 million barrels per day (bpd) -- near a 25-year high.

Daukoru said the stockpiles in oil consumer countries were at "more than comfortable" levels and added he saw no risk of a total halt of production in any of the OPEC countries despite recent attacks in Saudi Arabia and Nigeria.

Oil jumped more than $2 on Friday after news of a suicide bomb attack at the huge Abqaiq oil facility in Saudi Arabia, which triggered worries about supply from the world's top crude producer.

Oil prices were also pushed up by fears of deeper disruptions to oil exports from Nigeria -- which holds the OPEC presidency -- were oil networks have come under attacks from militants.

Royal Dutch Shell (Research) had been forced to cut output by 455,000 barrels a day, shutting in a fifth of the country's exports. Militants holding foreign oil workers hostage say they will continue attacks in the next few days.

Daukoru, who is the Nigerian Minister of State for Petroleum, said Saudi Arabia, Nigeria and many other OPEC countries have alternative oil facilities which are unlikely to come under a single, simultaneous attack.

He said his country would stick to its targets of increasing daily output capacity to 3 million bpd by June this year, and to 4 million bpd by the end of 2007.

Nigeria produced 2.4 million bpd in 2005.

Daukoru also said he supported an idea that oil prices should be pegged to currencies other than the U.S. dollar, but added "it is a very complex matter to realize."

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.