Members of the Organization of the Petroleum Exporting Contries have
been authorised to use their spare capacity if necessary to make up a
shortfall of Iraqi oil.
The cartel's Secretary General said Thursday that "countries are authorized to use their spare capacity and they are ready to use it if necessary." But, he says, that does not mean they've eliminated the quota system. He also said markets were currently "more than well supplied" and the cartel had "sufficient spare capacity to cope with
the Iraq situation."
Silva added, OPEC was ready to consider cutting production if oil
prices were to slump sharply further. He reiterated OPEC will continue to cooperate with leading producers to stabilize oil markets.
Commenting on reports that several Iraqi missiles hit Kuwait earlier
inthe day, Silva said that there were not facing any problems with oil
supply from Kuwait.
World oil prices extended a week long slump to new three month
lows on Thursday as the United States launched a widening offensive on Iraq and dealers predicted an easy victory for Washington.