LONDON, 20 February 2007 — The Organization of the Petroleum Exporting Countries does not need to make any further output cuts to support oil prices, the Center for Global Energy Studies said in a report published yesterday.
This is because lower output, recent cold weather across much of north America and slower than expected non-OPEC output growth has reduced supplies, the CGES said in its latest monthly study.
The report comes after Iran’s oil minister had Saturday predicted that OPEC would not need to make a further reduction at the cartel’s next meeting on March 15, as long as the price of crude remains around current levels. Oil prices have been trading in a range between $55 and $60 during recent weeks.
At its last meeting in December, OPEC decided to cut production by 500,000 barrels per day (bpd) from Feb. 1, following a reduction of 1.2 million bpd in November. The moves were aimed at propping up prices, which had tumbled from record highs above $78 per barrel in the middle of last year.
World oil prices fell yesterday.
In London, the price of Brent North Sea crude for April delivery lost 64 cents to $58.31 per barrel in electronic trading. New York’s main oil futures contract, light sweet crude for delivery in March, sank 82 cents to $58.57 per barrel in electronic deals.