[Peakoil] OPEC agrees to surprise 1.2m bpd cut in oil output

[Antony Barry]

It's probably the price but it could be the moment the future will  
identify as the peak.


Last Update: Friday, October 20, 2006. 11:22am (AEST)
OPEC agrees to surprise 1.2m bpd cut in oil output

The Organisation of Petroleum Exporting Countries (OPEC) has  
announced it has has decided to cut the cartel's oil output by 1.2  
million barrels per day (bpd) to 26.3 million bpd from November 1,  
following its extraordinary meeting in Doha.

"The conference decided to reduce production by an amount of 1.2  
million barrels per day from current production of about 27.5, to  
26.3, effective November 1, 2006," OPEC spokesman Omar Farouk Ibrahim  
told a press conference, as he read from an official statement.

OPEC members had suggested ahead of the meeting that the cartel would  
carry out a cut of only one million bpd in a bid to shore up flagging  
crude prices.

The cartel has decided to cut current output, which is below its  
official quota of 28 million bpd.

The official quota remains at 28 million bpd, where it has stood  
since July 2005.

"We are cutting from actual production of 27.5 million," United Arab  
Emirates Energy Minister Mohammad bin Dhaen al-Hamli told the press  
conference.

"Every country is cutting production ... We are talking about the  
OPEC 10."

OPEC has 11 members, but Iraq is not included in the official quota  
system following the US-led invasion of the country in March 2003.

Mr Hamli was speaking in place of OPEC president and Nigerian Oil  
Minister Edmund Daukoru, who failed to attend the Doha meeting.

- AFP



Tony


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