OPEC set to cut oil flows next year to support prices | The Daily Star
12:00 AM, December 14, 2012 / LAST MODIFIED: 12:00 AM, December 14, 2012

OPEC set to cut oil flows next year to support prices

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OPEC will likely cut its oil production next year as prices risk falling in reaction to higher output from top crude consumer the United States and amid a slowing of energy demand growth, analysts say.
The Organization of Petroleum Exporting Countries (OPEC) decided on Wednesday to hold its oil output ceiling at 30 million barrels per day, which stands about one mbd below the cartel's actual production.
At a ministerial meeting in Vienna -- where OPEC is based -- its 12 member countries also chose to re-appoint Secretary-General Abdullah El-Badri to head the group for another year after failing to agree on a new leader.
"When you look at the price now, there is not concern at this time," El-Badri told reporters at a post-meeting press conference in the Austrian capital on Thursday.
"I think the current price, at $110 (a barrel for benchmark Brent crude), is acceptable for both producers and consumers."
OPEC said on Wednesday that "the biggest challenge facing global oil markets in 2013 is uncertainty surrounding the global economy, with the fragility of the eurozone remaining a major concern."
It added in a statement following its meeting: "World oil demand is forecast to increase slightly during... 2013, (but) this is likely to be more than offset by the projected increase in non-OPEC supply" -- such as from the US.
OPEC's "overall interest is certainty in demand, and nobody can really tell whether this certainty in demand will be fully there," independent energy market analyst Karin Kneissl told AFP after Wednesday's meeting.

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