The Organization of Petroleum Exporting Countries (OPEC) minisetrs concluded a daylong emergency meeting in Vienna with a decision to raise the cartel’s production ceiling by 6.5 percent, or an additional 1.5 million barrels of oil per day (bopd) to reach 24.5 million bopd. The member states are looking to bring prices back down into OPEC’s target price range of $22-28 per barrel, in support of world economic growth.
The decision will take effect on February 1, but will mostly affect Saudi Arabia and the United Arab Emirates (UAE). The other eight producers are either close to or at their full production capacity, while Iraq is Iraq’s exports are under United Nations control.
The oil-production increase was promoted by the world’s top petroleum supplier Saudi Arabia in a bid to correct international shortages caused by a pumping strike in OPEC’s third largest member Venezuela and augmented by fears of a looming strike on another OPEC member, Iraq. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
