OPEC has decided to cut output by one million barrels per day from September 1, the president of the oil-producing organization, Algerian Energy Minister Chakib Khelil, said Wednesday, July 25.
"OPEC has decided to reduce its production by one million bpd from September 1, (and will keep) options open to hold an extraordinary meeting if the market requires it," Khelil told the official Algerian news agency APS.
Khelil said the Organization of Petroleum Exporting Countries would not hold an extraordinary meeting at its headquarters in Vienna in August. Khelil—whose country currently holds the rotating OPEC presidency—said the organization's move intended to "assure market stability, satisfy global demand, and avoid price volatility in the interest of producers and consumers."
He added that OPEC had considered "the impact of weak global economic growth and a drop in demand due to high oil stocks."
Oil prices in London fell slightly on the news of the cut, with a barrel of Brent North Sea crude for September delivery trading at $25.25, five cents down from an intraday high. — (AFP)
© Agence France Presse
© 2001 Mena Report (www.menareport.com)
