OPEC producers are set to leave output limits unchanged at a meeting on Tuesday, but look likely to call for improved compliance with existing curbs.
"For this meeting — no change," OPEC Secretary-General Abdullah al-Badri told reporters. "There is consensus that there is no change."
"If you look at the price, it is very comfortable. If you look at fundamentals, inventories they are on the high side. We have to work to bring them down to reasonable levels."
The Organization of the Petroleum Exporting Countries has not needed to alter its self-imposed output quotas since slashing supplies late last year to reverse a price crash as the world economy slid into recession. "If the price had stayed below $70 it might have put the wind up them. But it didn't go there, it is back in the $70s so they will leave well alone," said Neil Atkinson, senior analyst KBC Market Services.
Benchmark U.S. crude traded at $73.30 a barrel on Monday, having slipped briefly below $70 last week.
OPEC has no official price target but several countries, including leading producer Saudi Arabia, have called $75 a fair price for both consumers and producers.
The only issue for ministers is likely to be the degree of adherence with existing supply curbs, which has weakened in recent months, allowing more oil onto the market.
"We would like to see always better compliance," said UAE Oil Minister Mohammed bin Dhaen al-Hamli.
"What I'll be requesting and I expect others to do also is for countries to observe their quota and not to flood the market with crude that there is no demand for," said Iraqi Oil Minister Hussain al-Shahristani.
Leakage above allocations means compliance is only at about 60 percent of the 4.2 million bpd of restrictions agreed by the cartel late last year.
That puts production by the 11 members bound by output targets at 26.5 million bpd, versus a target of 24.84 million. Compliance peaked at about 80 percent in February and March, when prices were much lower.
Poor compliance could become an issue for OPEC if high inventories put pressure on prices going into 2010.
The least compliant OPEC member is Angola, currently holding the rotating presidency and host of Tuesday's meeting. (For further stories on compliance see and)
Targeted with a 240,000 bpd cut, Angola is pumping 320,000 bpd above its quota, according to a recent Reuters survey.
Other lax performers are Iran and Nigeria. Biggest producer Saudi Arabia is carrying the lion's share of the burden, having sliced all but 80,000 bpd of its 1.24 million reduction.
