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.