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Wed 17 Mar 2010 12:32 PM

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'No Question' about rolling over quota - Saudi oil min

Prices are 'beautiful'; no reason to revisit OPEC’s production limits - Ali Al Naimi.

'No Question' about rolling over quota - Saudi oil min
BIG PRODUCER: Saudi Arabia is producing 8.1 million barrels of oil a day. (Getty Images)

OPEC ministers are in agreement that there is no need for the group to change its oil output at Wednesday's meeting, Saudi Arabian Oil Minister Ali al-Naimi said.

"There is no question there is agreement...keep things as they are," Naimi said. "We are very happy with the situation as it is."

"Good demand, reliable supply, beautiful prices -- we are very happy.

Speaking directly before the start of the meeting, Naimi said OPEC did not need to revisit the levels of individual members output quotas.

"Whats new?" he said. "No, absolutely not."

Asked to comment on the group's level of compliance with existing output targets, Naimi said: "Everything is relative -- if there was no demand there would be no leakage."

"I expect demand to continue to grow mainly from Asia," he said, adding that global oil stocks fell by 28 million barrels in February.

Naimi said he expected world oil demand in the second half of the year to grown by "about a million barrels" per day.

The Saudi minister was asked of he was concerned that Russian oil exports were now pumped directly into the competitive Asian market, the main target for Gulf producers, via a new Pacific pipeline.

"How many times can I tell you there is nothing that bothers me," Naimi said. "It does not give me any headaches -- it is not even an issue."

"We haven't seen any reductions in Middle East supply" to Asia, Naimi said.

"This is a great market, I hope everyone can contribute to it," he added. "The world is going to need a lot energy, all kinds of energy." (Reuters)

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