WASHINGTON (Thomson Financial) - OPEC said oil inventory levels remain 'comfortable' despite the recent sharp rise in oil prices.
'Despite lower than expected non-OPEC supply, crude oil inventories remain at comfortable levels overall,' said Mohammad Alipour-Jeddi, head of OPEC's petroleum market analysis department.
Alipour-Jeddi told the IMF's policymaking body that the most recent data show commercial oil stocks in OECD countries 68 mln barrels above their average of the past five years.
'In terms of days of forward cover which takes into account demand expectations this corresponds to a healthy level above 53 days,' he said.
He acknowledged that US crude oil inventories have declined but said they are still more than 28 mln barrels above their five-year average.
Alipour-Jeddi said OPEC member countries are continuing to invest to expand their crude oil production capacity.
'As a result, OPEC spare capacity in the coming quarters is expected to rise above 10 pct, providing a comfortable cushion to meet unexpected supply shortages. Such levels should reassure the market that OPEC is ready and willing to meet the needs of the world oil markets,' he said. steve.whitehouse@thomson.com sw/ro COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.