After touching new Low, Opec agrees oil production curb

by Sanjay Jha | September 9, 2008 at 09:00 pm

204 views | 0 Recommendations | 0 comments

Faced with slump in demand and constant falling price Oil Production cartel OPEC has announced it plans to curb output by more than half a million barrels as oil prices slid to their lowest levels since April.

After their regular six-monthly meeting in Vienna OPEC members in Vienna said that the organisation had agreed to produce 28.8 million barrels a day - a cutback of 530,000 barrels a day to stem the price slide. OPEC members will re-assess the situation when the meet again at the end of the year.

Opec has told its members to strictly limit their production to agreed quotas as Brent crude dipped below $100 a barrel for the first time since April.
After talks in Vienna, Opec president Chakib Khelil said the measures to curb over-production amounted to a cut of 520,000 barrels a day within 40 days.
North Sea Brent fell $4.54 to $99.04 on Tuesday before rising to $100.34, while US Brent fell $3.08 to end on $103.26.
Prices have sunk from a record of more than $147 a barrel seen in July.
The price has since fallen by nearly 30% as a global economic slowdown has reduced demand for oil.
Supply has also been increased in recent months by some Opec members - principally Saudi Arabia.
Meanwhile, Indonesia has said suspended its membership of Opec.
"The conference regretfully accepted the wish of Indonesia to suspend its full membership in the organisation and recorded its hope the country would be in a position to rejoin the organisation in the not too distant future," Opec said in a statement.