Opec plans output cut to prop up oil price

theski · Post by **theski** » 2004-02-10 10:20pm

Opec on Tuesday pledged to cut oil output by 10 per cent, in a bid to prop up prices before the summer, when demand in its largest markets falls steeply.

The powerful 11-country oil cartel, meeting in Algiers, resolved to stop cheating on its 24.5m barrel a day quota immediately, a move that would cut output by 1.5m barrels a day.

Opec's 10 active members - Iraq's struggling industry is not subject to the quota - then intend to reduce their quota on April 1 by a further 1m barrels a day to 23.5m.

Much of the reduction would have to come from Saudi Arabia, the group's biggest member.

The decision pushed oil prices higher, with Nymex crude, the US benchmark, jumping $1.04 to $33.87 a barrel and IPE Brent, the European benchmark, rising 93 cents to $30.04.

http://news.ft.com/servlet/ContentServe ... 2571727088

Gosh don't these silly countries know we invaded Iraq for the oil

What are they thinking.??

Admiral Valdemar · Post by **Admiral Valdemar** » 2004-02-10 10:42pm

Good ol' OPEC. Keeping the evil syndicate stereotype alive since the 1970s...

Sarevok · Post by **Sarevok** » 2004-02-11 02:08am

OPEC oil production reports are hardly interesting to read. They increase/decrase output from time to time. This is nothing new.

Post by **Vympel** » 2004-02-11 02:09am

What does Iraq have to do with this, theski?

Sarevok · Post by **Sarevok** » 2004-02-11 02:16am

Maybe this is part of the vast Arab conspiracy to destroy America.

Darth Yoshi · Post by **Darth Yoshi** » 2004-02-11 02:38am

Bah. Aren't the Russians entering the oil market, too? That kinda puts a dent in OPEC's power.