Wednesday, September 10, 2008

OPEC decision to reduce production of oil

The Organization of Petroleum Exporting Countries (OPEC) decided today that "[s]ince the market is over-supplied, the Conference agreed to abide by September 2007 production allocations (adjusted to include new Members Angola and Ecuador and excluding Indonesia and Iraq), totaling 28.8 mb/d, levels with which Member Countries committed to strictly comply" (from press release on meeting).

This is a possible reduction of 520,000 barrels of oil from the daily supply. This means that the reduction we had seen since last week (see graphs from the Energy Information Administration) may be over.

Want to read more about this? Check out the Washington Post's "OPEC to Pare Back Production by Enforcing Its Own Quotas."

Want more energy information? Check out the library's guide.

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