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March 2007 - OPEC OK with Current Supply and Price
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OPEC ministers won't be increasing crude supply, suggesting they favored present levels, and prices. A barrel of oil still costs around 40 percent more than in 2004. The world economy suggests unrest continues and demand is slowly increasing; predictions suggest the world's appetite for oil is on the rise.
Total OPEC output last month averaged 30.2 million barrels — 400,000 barrels less than OPEC should produce to meet world demand, said the IEA, the energy watchdog of the world's major industrialized countries. And — barring the unexpected — consumption is set to increase with the approach of the high-demand North American summer driving season.
The 10 OPEC members bound by quotas agreed to total cuts of 1.7 million barrels a day in October and February. And while analysts say that the reductions have not been fully implemented, they have kept prices at levels OPEC feels comfortable with.
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Mar 14, 2007, 8:46 PM
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