OPEC to Cut Production by 1 Million Barrels

To stem the three month decline in prices OPEC is going to cut oil production by 1 million barrels a day. Saudi Arabia is strongly backing this cut in production as well.

DOHA, Qatar OPEC producers led by Saudi Arabia sought to reassert their grip on falling oil prices Thursday by backing a production cut of 1 million barrels a day and suggesting more reductions might follow before the end of the year to prop up sagging prices.

Ali al-Naimi, Saudi Arabia’s oil minister and OPEC’s most influential representative, said he “absolutely” backed the proposed production cut, which was being discussed at an emergency meeting in Qatar. He said the oil cartel might consider further trims in its output when it meets in the middle of December in the Nigerian capital, Abuja.

So much for the idea that the Saudis are raising production to help the Bush Administration during the mid term elections.

FILED UNDER: Campaign 2006, Economics and Business, US Politics, ,
Steve Verdon
About Steve Verdon
Steve has a B.A. in Economics from the University of California, Los Angeles and attended graduate school at The George Washington University, leaving school shortly before staring work on his dissertation when his first child was born. He works in the energy industry and prior to that worked at the Bureau of Labor Statistics in the Division of Price Index and Number Research. He joined the staff at OTB in November 2004.

Comments

  1. Anderson says:

    So much for the idea that the Saudis are cutting production to help the Bush Administration during the mid term elections.

    They can’t stand the g.d. Republicans any more, either. Regime change!