Reply #29: Al Jazeera, Oct 5th, "OPEC to cut production"

[TheBaldyMan]

The story says OPEC are planning to cut production by 1 billion barrels per day now that oil has sunk below $60 per barrel.
from the website:http://english.aljazeera.net/NR/exeres/20C62388-D629-416F-9E33-F2C901D5C2F9.htm">OPEC to cut production

The Organisation of Petroleum Exporting Countries will make the cut after prices dropped 23 per cent in less than three months, a senior delegate said.

World markets are oversupplied with crude and fuel stocks in the US are at a 7-year high which has caused prices to fall from a peak of $78,40 in mid-July.

The exact date for the move is still to be decided, the delegate added.

The US expressed dismay at the decision. Sam Bodman, the energy secretary, said he would tell Opec ministers that the world still needed all the oil they could pump as they head into winter. He pointed that at $60 a barrel oil was still near record highs.

"We still need oil for sure. We still need all the oil we can get," Bodman told Reuters news agency.

The prices may be falling temporalily because of US stockpiles but expect the price of oil to be maintained at high levels all through 2007.