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| OPEC Conference in Qatar decided to reduce production A Consultative Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) convened in Doha, Qatar, on 19th and 20th October 2006. Having reflected on the oil market situation, in particular forecasts for the fourth quarter 2006 and the year 2007, the conference observed that actions taken by OPEC in recent years have contributed to stability in the oil market, to the benefit of producers and consumers alike, and have demonstrated OPEC's success in assuring adequate supplies to consumers. Heads of Delegation noted with concern, however, that crude oil supplies are well in excess of actual demand, as the above-average level of crude stocks in OECD countries demonstrates, and that the over-supply situation and imbalance in supply/demand fundamentals have destabilized the market. In the light of the foregoing, and in order to ensure market stability, the conference decided to reduce production by an amount of 1.2 mb/d, from current production of about 27.5 mb/d, to 26.3 mb/d, effective 1st November 2006. This interim arrangement will be reviewed at the Extraordinary Meeting of the Conference scheduled to convene in Abuja, Federal Republic of Nigeria, on 14th December 2006. write your comments about the article :: © 2006 Construction News :: home page |