OPEC in agreement on production cuts
December 15, 2008
The president of the Organization of Petroleum Exporting Countries oil cartel said its members were unanimous in agreement to cut production.
Two days before OPEC members were scheduled to meet in Oran, Algeria, President Chekib Khalil said Monday that world oil supply had overwhelmed demand and the market is saturated, the Kuwaiti news agency KUNA reported.
He said oil prices, currently at about $48 per barrel, would have fallen to $10 per barrel had the cartel not cut production in October.
Khalil also said demand would fall by 200,000 barrels per day for the first eight months of 2009.
An economic recovery by the end of the year would help stabilize the market, however, he said.
Source: upi