Opec will not cut production or formally return to its quota system for at least the rest of 2006 as it works to stabilise oil prices, the group's president Edmund Daukoru said Thursday.
Speaking in Brazil during a visit to sugar cane research center to discuss biofuel production, Daukoru said he saw no reason for Opec to revise its quotas right now.
"I don't see a return to quotas or cutting back in production for this year at least," Daukoru told reporters. "I don't see a revision of quotas."
Crude oil fell more than a dollar Thursday to its lowest price in nearly two months after ample US fuel stockpiles eased fears of supply shortages.
"We will continue to produce to show the market there is an excess in production and that high prices are more a result of limits in refining capacity," Daukoru said.
Daukoru left the cane research center shortly afterwards.
Brazil is the world's biggest producer and exporter of cane-based biofuel. Brazil's state-controlled oil company Petrobras has long-term contracts to ship biofuel to Nigeria.