OPEC Defers Oil Production Cut
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Sunday, 30 November 2008 |
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OPEC has put on hold for two weeks, a decision on whether to cut
production again this year. Opec wants to review the impact of previous
cuts, as it looks for oil prices of $75 a barrel.
Crude oil prices have slumped 62 percent from July’s record of $147.27 a barrel as the global recession cuts fuel demand. Ali al-Naimi, the oil minister of Saudi Arabia, OPEC’s largest exporter and its de facto leader, said yesterday that $75 a barrel oil represents a “fair price” needed to support investment in new oil fields.
OPEC, the producer of more than 40 percent of the world’s oil, will next meet in Oran, Algeria, on Dec. 17. In a statement after yesterday’s meeting in Cairo, the group warned that oil demand will be “much lower” than expected a month ago. Prices have continued to slide even after the group agreed on Oct. 24 to cut production by 1.5 million barrels a day starting Nov. 1.
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