Reuters reported that OPEC oil producers gathered on Wednesday for a meeting that is expected to reset a production limit for the first time in 3 years and settle an argument over output levels in Saudi Arabia's favor.

The Organization of the Petroleum Exporting Countries ministers will consider a new supply target of 30 million barrels daily roughly in line with current production.

Mr Jose de Vasconcelos oil minister of Angola said that “I think so, this is good of the proposed 30 million barrel per day deal ahead of the meeting. The expected agreement would put a cap on output for all 12 OPEC members for the H1 of the year keeping supply near 3 year highs.”

Ministers may also discuss, but are thought unlikely to settle individual national quotas. When OPEC met in June it failed to reach an agreement on a higher supply limit, leaving Saudi Arabia free to open the taps to compensate for lost Libyan supply.

Mr Rostam Qasemi oil minister of Iran said that we had a friendly chat. Everything is OK. Price hawks Iran, Venezuela and Algeria, all of whom already pump at full capacity, want to keep oil prices above USD 100 per barrel. Brent crude traded at just over USD 109 on Wednesday.

Mr Youcef Yousfi oil minister of Algeria said of oil prices said that “We think the present level is appropriate for producers and consumers.”

The hawks are seeking a commitment from Saudi and its fellow Gulf Arab producers Kuwait and the United Arab Emirates to make room for the restoration of Libya's supply so that collective production does not balloon over the course of 2012.

(Sourced from Reuters)