Sunday, November 30, 2008

OPEC Puts Off Action Until Dec. 17

OPEC President and Algerian Oil Minister Chakib Khelil said he expects oil demand to be much lower than a month ago, and added that the group will take any additional action Dec. 17 at its formal meeting in Oran, Algeria.

The Organization of Petroleum Exporting Countries decided Saturday to put off any fresh action over whether to further cut its production until it meets again in mid-December, said Head of Libyan National Oil Co., Shokri Ghanem.

The Organization of Petroleum Exporting Countries is concerned about swelling oil inventories and fizzling global demand, which have shoved crude prices nearly 60% lower since July.

"We note with concern the deteriorating situation," Mr. Khelil said. "Oil demand is expected to be much lower than a month ago."

"Ministers have agreed to take any additional decision on Dec. 17 to balance oil supply and demand and to achieve stability," Mr. Khelil said.

The OPEC president added, "Ministers agreed an increased scrutiny to monitor the situation in the next two weeks."

Referring to the group's Oct. 24 decision to cut its production by 1.5 million barrels a day, Mr. Khelil said: "It's being implemented. Members are fulfilling their commitments."

Sources: The Wall Street Journal

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