Opec to debate further quota cuts
By John Cummins (Vienna), BBC News, Sunday, 15 March 2009
Opec has already cut oil production quotas three times
Oil ministers from the 12 Opec countries are meeting in the Austrian capital Vienna.
With global demand for oil predicted to fall this year, the ministers face a tough choice.
They must decide whether to cut production quotas for a fourth time in six months or risk another sharp decline in the price of oil.
Oil prices have fallen from a record high of more than $147 (£24) a barrel in July to around the mid-$40 mark.
Analysts are warning, however, that further cuts in production could backfire, destabilising the fragile global economy and pushing down the price of crude even further.
Many Opec members are believed to favour enforcing previous cuts before any new measures are considered.
According to Opec figures, the 12 member states have so far delivered only around 80% of the 4.2 million barrels per day in cuts that have been agreed since September last year.
The presence of non-Opec member Russia could also influence the outcome of the meeting.
Russia, which vies with Saudi Arabia as the world's largest oil producer, is sending Deputy Prime Minister Igor Sechin to Vienna to observe proceedings.
© MMIX
Posts
No comments:
Post a Comment