OPEC could consider the possibility of temporarily suspending its output quotas at a meeting in Beirut next week, an OPEC source said today.
The source said although he had heard no serious discussion yet of that possibility, it could not be ruled out, given that most in OPEC already were pumping at full capacity.
Such a move would make little difference to actual output but could provide a psychological impact on prices. It would also give official cartel blessing for Saudi to pump more without blatantly ignoring its new, higher quota.
Saudi Arabia has proposed OPEC raise production quotas by two million to 2.5 million barrels a day, 8 to 11 per cent .
But the group is already estimated to be pumping about 2.3 million bpd above the existing limit of 23.5 million bpd with little, if any, immediate spare capacity other than Saudi.
Saudi Arabia has already pledged to pump at least nine million bpd next month, a real extra addition of some 700,000 bpd.
Assuming a group increase is divided pro-rata, nine million bpd is far above any quota Riyadh would be granted under a group increase in the range 2-2.5 million bpd.
Saudi Arabia's official quota now is 7.638 million bpd, 32.5 per cent of the Opec total. Under a pro-rata 2-2.5 million bpd increase Saudi Arabia would get an official quota of 8.29-8.45 million bpd.