Saudi Oil Minister Ali Al-Nuaimy recently stated that OPEC has decided to cut its production by 1.5 million barrels per day and non-OPEC oil producing countries will cut their production by 462,000 barrels per day, reported Al-Hayat.
The decision is geared toward the prevention of a decrease in the price of oil. If the price of oil should fall beneath $18, OPEC’s revenues will be severely damaged. The minister added that OPEC will suspend its oil pricing mechanism for the next half year, since it is impossible to determine an average $22-28 per barrel oil price under the current circumstances. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
