Will be a good week for OIL and BDGR!!!!
OPEC to announce cut in production this week
Bloomberg News, Reuters
Published: October 15, 2006
ALGIERS OPEC ministers have agreed to reduce daily production by one million barrels and will announce the decision this week at a meeting in Doha, Qatar, an Algerian official said Sunday.
"All OPEC members came to an agreement to reduce OPEC production by one million barrels per day," the minister of energy and mining, Chakib Khelil, was quoted as saying by the Algérie Presse Service.
The ministers, who plan to meet from Wednesday to Saturday, will announce the reduction "officially and in a coherent manner during our next meeting in Doha," Khelil said. "The cut would certainly have direct impact in the market," he added.
The supply cut is aimed at reviving oil prices, which have fallen by a quarter in the past three months. OPEC's daily output quota is now 28 million barrels. Under the quota, 10 members pumped 27.6 million barrels a day last month, according to Bloomberg data. Iraq is exempt from the quota.
On Friday, crude oil for November delivery rose 71 cents, or 1.2 percent, to $58.57 a barrel on the New York Mercantile Exchange.
On Thursday, futures reached $57.22, their lowest level since last Dec. 19. The contract slipped 2 percent last week.
Venezuela, OPEC's only member from the Western Hemisphere, ordered four heavy-oil ventures to reduce output by 1.6 percent to help support prices, Ruben Figuera, the president of one venture, said Friday. But Venezuela's minister of energy and petroleum, Rafael Ramírez, said on state television Friday that world oil output was outpacing demand by about 500,000 barrels a day.
OPEC's shipments of crude oil will decline 0.8 percent in the month to Oct. 28 from the preceding four weeks because of lower refinery demand, Oil Movements, a consultancy based in Halifax, England, said last week.
ALGIERS OPEC ministers have agreed to reduce daily production by one million barrels and will announce the decision this week at a meeting in Doha, Qatar, an Algerian official said Sunday.
"All OPEC members came to an agreement to reduce OPEC production by one million barrels per day," the minister of energy and mining, Chakib Khelil, was quoted as saying by the Algérie Presse Service.
The ministers, who plan to meet from Wednesday to Saturday, will announce the reduction "officially and in a coherent manner during our next meeting in Doha," Khelil said. "The cut would certainly have direct impact in the market," he added.
The supply cut is aimed at reviving oil prices, which have fallen by a quarter in the past three months. OPEC's daily output quota is now 28 million barrels. Under the quota, 10 members pumped 27.6 million barrels a day last month, according to Bloomberg data. Iraq is exempt from the quota.
On Friday, crude oil for November delivery rose 71 cents, or 1.2 percent, to $58.57 a barrel on the New York Mercantile Exchange.
On Thursday, futures reached $57.22, their lowest level since last Dec. 19. The contract slipped 2 percent last week.
Venezuela, OPEC's only member from the Western Hemisphere, ordered four heavy-oil ventures to reduce output by 1.6 percent to help support prices, Ruben Figuera, the president of one venture, said Friday. But Venezuela's minister of energy and petroleum, Rafael Ramírez, said on state television Friday that world oil output was outpacing demand by about 500,000 barrels a day.
OPEC's shipments of crude oil will decline 0.8 percent in the month to Oct. 28 from the preceding four weeks because of lower refinery demand, Oil Movements, a consultancy based in Halifax, England, said last week.
