OPEC Looks to Cut Production

March 15, 2001
OPEC is close to making a decision to cut output by about one-million barrels a day to keep prices near $25 a barrel as demand slows, oil ministers said. Venezuelan oil minister Alvaro Silva said a consensus was forming on a reduction of about that size, equal to 3.6% of the group's production, and that OPEC was considering amounts between 750,000 and one million barrels a day. Iranian oil minister
OPEC is close to making a decision to cut output by about one-million barrels a day to keep prices near $25 a barrel as demand slows, oil ministers said.

Venezuelan oil minister Alvaro Silva said a consensus was forming on a reduction of about that size, equal to 3.6% of the group's production, and that OPEC was considering amounts between 750,000 and one million barrels a day. Iranian oil minister Bijan Namdar Zanganeh also said the cut would be about one million barrels.

The International Energy Agency yesterday trimmed its forecast for demand growth this year for a fourth straight month, predicting a gain of 1.4 million barrels a day, 460,000 fewer than in December.

Ali Rodriguez, OPEC's secretary general, told reporters he expects world oil use would increase by 1.3 million barrels daily, of which nations outside OPEC would supply one million barrels a day. Ali al-Naimi, the oil minister for Saudi Arabia, forecast a gain of 1.1 million to 1.2 million barrels in daily demand.

OPEC last month lowered production and is preparing another move to counter a seasonal drop in demand before the summer travel season begins in the U.S., a nation that consumes a quarter of the world's oil.

OPEC’s production accounts for 40% of the world's oil.

About the Author

Tim Parry

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!