OPEC President Abdullah bin Hamad al-Attiyah said that the organization will reconsider all options after September, an indication that the cartel may cut production depending on the recovery of oil production in Iraq.

Having reviewed the current oil market situation, as well as supply/demand prospects for the remainder of the year, the members decided that the market is stable and well supplied, and that prices have remained within agreed levels.

The cartel also stated that prospects for the fourth quarter of 2003 and for 2004, however, indicate that estimated demand growth is less than the expected increase in supplies.

It was therefore decided to maintain currently agreed production levels until its next meeting, emphasising at the same time the need for continued vigilance, careful monitoring and analysis of the market for the balance of 2003 and 2004.

The members also renewed its standing call on other oil producers/exporters to cooperate with OPEC in their endeavours to maintain market stability in the interests of all concerned.

One of the factors behind the decision to hold the production ceiling unchanged was the slow recovery of Iraq's oil production removing the concern of overproduction. The average crude oil price has been staying within the OPEC-set upper target of $28 per barrel.