VIENNA: OPEC talks broke down in acrimony Wednesday without an agreement to raise output after Saudi Arabia failed to convince the cartel to lift production. "Unfortunately we are unable to reach a consensus to reduce or raise production," Organization of the Petroleum Exporting Countries Secretary General Abdullah El-Badri told reporters. "This is one of the worst meetings we have ever had," said Saudi Oil Minister Ali Al-Naimi. Naimi said 6 countries in the 12-member group were opposed to an increase in output. He said Gulf countries had proposed an increase to 30.3 million barrels a day, compared to current supply of about 29 million bpd, including Iraq which is not bound by an OPEC quota. Oil prices are surging above $100 per barrel after OPEC unexpectedly announced that it will keep production levels where they are. Analysts thought the 12-member group would boost production in an effort to cool off oil prices and take some pressure off the world economy. Increased global demand combined with violent uprisings in countries of North Africa and the Middle East forced crude prices 25 percent higher from January to April. Benchmark crude for July delivery rose $1.25 to $100.34 per barrel in morning trading on the New York Mercantile Exchange. In London, Brent crude added $1.22 at $118 per barrel on the ICE Futures exchange. El-Badri said the effective decision was no change in policy but that he hoped OPEC would meet again in three months time. Naimi said the next meeting would be Dec. 14. The failure to reach an agreement will be a blow for industrialized consumer countries hoping OPEC would take action to stem fuel inflation. Brent crude rose $1.64 a barrel to $118.42. No date has been set for another meeting. Gulf delegates said Iran, Venezuela and Algeria were among those to refuse to consider an output increase. Non-Gulf delegates said Saudi Arabia had proposed an increase on top of April supplies that was too high for them to contemplate. Naimi said Saudi Arabia was committed to supplying market needs. OPEC's Vienna secretariat sees demand in the second half of the year 1.7 million bpd higher than current organization output.
