Posted on 12/11/2004 9:55:29 AM PST by Tumbleweed_Connection
How well OPEC complies with its own decision to reduce its crude-oil production by 1 million barrels per day will determine the impending overall international impact on prices.
Ministers of the Organization of Petroleum Exporting Countries, meeting in Cairo Friday, voted to leave their 27 million bpd production quota intact and instead will rein in the chronic overproduction of crude that in recent weeks has resulted in an average of an extra 1 million bpd being placed on the market, causing prices to soften.
"Member countries, which have responded to the market need for additional supply over the course of this year by producing above their allocations, have agreed to collectively reduce the over-production by 1 million bpd from their current actual output, effective Jan. 1, 2005," OPEC said in its communiqué Friday.
"Further," the statement said, "taking into consideration the market outlook for 2005, in particular the seasonally, lower-demand second quarter, when oil prices are expected to come under growing pressure, the Conference (OPEC) reaffirmed its determination to take all measures deemed necessary to keep market stability and maintain prices at reasonable levels."
(Excerpt) Read more at washingtontimes.com ...
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