Oil and Gas News

OPEC to cut production by a further 500,000 barrels from February

Dec 14, 2006, 15:11 GMT

Abuja - The Organization of Petroleum Exporting Countries (OPEC) is set to reduce its crude production from next February by a further 500,000 barrels per day (159 litres per barrel), OPEC President Edmund Dakoru said Thursday.

Dakoru made the announcement after a meeting of OPEC energy ministers in Abuja.

In mid-October, OPEC cut a record production quota of 28 million barrels, which lasted almost 18 months, by 1.2 million barrels, thus bringing a 10-week decline in crude prices to an end.

Dakoru justified the move by citing the large amounts of oil reserves on the international market and the devaluation of the US dollar, which has reduced the purchasing power of the OPEC countries.