Official: OPEC Has Reached Output Limit

OPEC Has Reached Production Limit, and Trying to Expand Output Won't Lower Rates, Algerian Says

ALGIERS, Algeria Mar 12, 2005 — OPEC has reached its production limit, and trying to stretch output by one million barrels per day isn't likely to lower oil prices, Algeria's minister for energy and mines said.Chakib Khalil said prices were high because of world economic growth particularly in the United States and China. Algeria is one of the 11 members of the Organization for Petroleum Exporting Countries.

"OPEC has reached its production limits. It doesn't have much production capacity," he said at the opening of an industrial plant in the western town of Arzew, according to newspaper reports on Saturday.