Jan 30, 2005

Opec keeps Production Unchanged

Opec apparently likes the price of oil just where it is.
Opec, which produces about 40 per cent of global oil supplies, also put consumers on notice that it was prepared to act swiftly to cut supply should prices fall dramatically or should global oil inventories rise to within 56-60 days of consumption from the level of 51 days. Global oil inventories are expected to rise during spring as world oil demand slows.
The minister said Opec was currently producing 500,000 barrels a day above the official output ceiling of 27m b/d, and reiterated Opec's recommendation from its meeting last month in Cairo that members must comply with quotas. This in effect signals a possible cut in supplies in the near term.
From the FT.

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