OPEC to consider second production cut

OPEC, the producer of 40% of the world's oil, is considering its second production cut in three months to prevent a price drop early next year. Officials from Venezuela and Iran said the group should reduce supply because of rising inventories. Representatives from Qatar and Nigeria said the U.S. dollar's 11% drop against the euro this year is eroding the purchasing power of OPEC's dollar-based revenue. "The cut could be up to 500,000 barrels a day," Venezuelan Oil and Energy Minister Rafael Ramirez said Nov. 30.

Saudi Arabia said on Dec. 1 that stockpiles are too high. OPEC convenes this week in Abuja, Nigeria. The group agreed to cut production by 1.2 million barrels a day as of Nov. 1. OPEC has so far made about half the promised target. Excluding Iraq, which is excused from the accord, OPEC's November crude output fell to 26.97 million barrels a day, down 535,000 barrels from October, according to data compiled by Bloomberg.

(2006-12-11 17:25:33 SGT) [Energy] Permalink

Comments:

Post a Comment:

Comments are closed for this entry.

« Power bill update | Main | Balls to you, too »

Most popular blog postings on lowem.log :

1. Singapore MRT rail network length to double by 2020
2. 2010 Nissan Leaf electric car specifications : 107hp, 24KWh lithium-ion batteries, 100-mile range
3. Live spot gold price quotes chart on COMEX
4. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
5. AVG Anti-Virus Free Edition 2011 direct download link
6. Real-time live gold and silver price quotes chart on COMEX
7. Singapore electric vehicles : Government agencies EMA and LTA to study EV introduction
8. Book review : Shut Down by William Flynn

Featured articles on lowem.log :

1. Book review : Shut Down by William Flynn
2. Singapore electric cars testing starts with 9 electric vehicles
3. Honda, GS Yuasa JV to make lithium-ion batteries for 2010/2011 Honda Civic Hybrid
4. 2010 Honda Civic Hybrid preliminary specifications released
5. 2010 Honda CR-Z hybrid, 2010 Honda Fit/Jazz hybrid models confirmed
6. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore : Nuclear power not ruled out