OPEC Agrees Oil Supply Crackdown

[welshTerrier2]

CAIRO (Reuters) - OPEC oil producers on Friday agreed to squeeze out excess supply that has lowered world prices from record highs.

Ministers said they would withdraw one million barrels daily of production -- around 3.5 percent of current supply -- from January 1 and meet again on January 30 to discuss whether further cuts were necessary.

"Stocks are building up at a unreasonable rate, This is a preventative measure. It is enough to sharpen the market," said Algerian Energy Minister Chakib Khelil.

The decision will disappoint consumer nations which have urged OPEC not to pull back from a surge in production, saying oil inventories must rebuild to underpin economic growth and calm volatile prices.

more ...

[gnofg]

1. But

* was going to keep oil prices down by being tough. yeah sure

[oneighty]

2. Not to mention

all that free Iraqi oil.

180

[Solon]

3. I wonder when OPEC will admit they can't keep up with demand? n/t

[Earth_First]

4. Very soon...

pure speculation, however, soon.

[Solon]

5. I think they won't admit it until it is unavoidable...

when they have to admit that the 1980's estimates were straight up lies. Hell some of them damn near doubled their reserves in a year, pretty extrodinary in those days.

[Deja Q]

6. As they've been overstimulating 'production' by 1 mil already,

there is no real net loss.

Pity the whole world sees oil as it does paper, people, or any other readily disposable commodity. :shrug:

[Walt Starr]

7. Elkection is over

No need to prop up production in order to placate the American electorate so their boy wins.

[seriousstan]

8. You saw a reduction in gas prices before the elections?

Not in Ohio. The prices were at the peak just about a month ago.

[durablend]

9. Didn't seem to make a difference today...

Oil prices way down yet again.

I kind of wish their proclamation had stabilized prices. If prices keep falling I wouldn't be surprised if they decide to yank a couple of million barrels off the market ASAP.