Opec's inability to tackle high oil prices was underlined today when leading producer Saudi Arabia said real supplies would not rise despite a plan to increase official quota limits.
Saudi Oil Minister Ali-al Naimi said Riyadh had informed its customers of export allocations for July that mean keeping output steady at 9.5 million barrels a day.
Meeting on Wednesday, Opec is considering lifting output quotas by 500,000 barrels a day, 2 per cent, to 28 million bpd.
But even Opec President Sheikh Ahmad al-Fahd al-Sabah, admits the move is little more than a gesture to consumer countries worried that oil prices are impeding world economic growth.
"Just symbolic," was Sheikh Ahmad's assessment of the planned policy change. US crude eased 51 cents to $55.11 a barrel in today’s trade after a $2 leap yesterday.
Opec shares concerns about a lengthy period of $50 oil because of the potential impact on fuel demand and the incentive for consumer countries to invest in alternative fuels.