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OPEC Ministers Reject Cut in Oil Price
By Fidelia Okwuonu with agency report, 03.15.2007

The Organisation of Petroleum Exporting Countries (OPEC), at its meeting yesterday in Vienna, Austria, rejected a cut in the price of oil despite the cost,.
The comments by the oil ministers of Nigeria and Kuwait as well as a senior Libyan oil official, reflected satisfaction with present prices on the part of OPEC.
According to the report, it further indicates that the oil ministers will not change the output when they convene again. The officials stated that the committee estimates current compliance with the two rounds of cuts agreed on in October and December last year to be about 70 percent.
The report also added that without Iraq and Angola, which are not bound by quotas, daily OPEC oil production last month was 26.8 million barrels a day.
"Total OPEC output last month averaged 30.2 million barrels — 400,000 barrels less than OPEC should produce to meet world demand," said the International Energy Agency (IEA).
According to the report, "two cuts in the past four months have contributed to relative stability that has kept benchmark crude between $50 and $60 a barrel down from the record highs of above $78 a barrel last summer, but still around 40 percent above 2004 levels."
"Present prices leave comfortable profit margins both for producers and the major oil companies while remaining below the pain threshold that leads to reduced world consumption, and increased interest in alternative fuels such as ethanol.”