OPEC sees drop in oil prices, and will drop production to strangle the West…again
Opec may cut production
- Last Updated: August 18. 2008 9:58PM UAE / August 18. 2008 5:58PM GMT
Oil prices will likely decline more without Opec cuts, a report said. AP
Opec may cut oil production early next year to halt the slide in oil prices, but this could cause a sharp rebound in prices if the cuts are too deep, according to an energy think tank.
“We expect Opec to act to defend a price floor of somewhere around US$100 a barrel,” the Centre for Global Energy Studies (CGES), a respected London-based analysis house, said yesterday in a report. “To do this, they would need to start cutting production at the start of 2009.”
The CGES predicted that Opec, the supplier of more than 40 per cent of the world’s crude, would trim output by about 300,000 barrels per day (bd) at that time, and by a further 500,000 bd in the following quarter.
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