* OPEC's Oil Output Remains Flexible- Senior Saudi Source

Wednesday, Dec 14, 2011

 
   By Benoit Faucon 
   Of DOW JONES NEWSWIRES 
 

VIENNA (Dow Jones)--OPEC's current oil production remains flexible enough to respond to fluctuations in oil demand, a senior Saudi source said Wednesday, after a meeting of the Organization of Petroleum Exporting Countries.

The senior Saudi source said OPEC's deal to introduce a new group production ceiling of 30 million barrels a day--including current Iraqi and Libyan oil production levels--"was a collective agreement."

OPEC oil production could rise by 300,000 to 500,000 barrels a day if market demand warrants it, but could also be reduced if demand drops, the Saudi source said.

"Maybe the world economy won't allow 30 million barrels" a day, the source said.

-By Benoit Faucon, Dow Jones Newswires, +44 77 601 777 36; benoit.faucon@dowjones.com

(END) Dow Jones Newswires

14-12-11 1523GMT