If trend continues a cut will be effective from Jan. 8
The OPEC news agency reported Friday, that the daily price of OPEC's basket of seven cruds when down 62c at U.S. $21.64 per barrel Thursday, from Wednesday's $22.26 per barrel. The basket is at its lowest level since April 11.
On Thursday it was the first day the basket price when down below $22,00 since last April .
OPEC's price band mechanism triggers a 500,000 barrels a day increase if the basket price holds above $28/bbl for 20 consecutive trading days, or lower output by 500,000 b/d if the basket price moves below $22/bbl for 10 consecutive trading days.
Iran's governor to OPEC, Hossein Kazempour Ardebili, told Dow Jones Newswires Friday. "If this trend continues, a 500,000 b/d cut will be effective from Jan. 8," he said.
OPEC would then review the market situation when it meets Jan. 17 in Vienna and make a decision regarding further output cuts.
The OPEC crude oil basket is based on the average prices of Algerian Saharan Blend, Dubai Fateh, Indonesian Minas, Mexican Isthmus, Nigerian Bonny Light, Saudi Arabian Arab Light, and Venezuelan Tia Juana Light.
By Elio Ohep
© 2000 Mena Report (www.menareport.com)
