OPEC cuts oil production

Bud Bud · 12-10-2006, 12:07 PM

Hi guys, just got this off of a news letter today. Not good news at the moment.

OPEC to cut global production by 1mln barrels per day

12/10/2006 - OPEC will cut global production by one million barrels a day, Nigerian oil minister and OPEC president Edmund Daukoru said on Wednesday.

"The cut itself is agreed," Daukoru told reporters after a Cabinet meeting in the Nigerian capital, adding the cuts would begin at the end of the month.

Daukoru said members of the producing cartel were still working out how to share out the cuts, but were "nearing consensus".

Daukoru's comments followed a slew of reports attributed to anonymous sources from member countries who said the cartel plans to trim its daily production by one million barrels to prop up prices.

Daukoru had said last week that OPEC was considering holding an emergency meeting before its scheduled December 14 conference to discuss what to do about falling prices.

Oil prices have fallen sharply on global markets in recent weeks. On the New York Mercantile Exchange, light, sweet crude oil futures for November delivery reached a fresh eight-month settlement low on Tuesday. It settled down $1.44, or 2.4 per cent, at $58.52 a barrel.