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OPEC: Still No Plan to Cut Oil Production
The Organization of the Petroleum Exporting Countries reiterated on Sunday that it won't reduce petroleum output in spite of plunging oil prices.
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The Organization of the Petroleum Exporting Countries reiterated on Sunday that it won't reduce petroleum output in spite of plunging oil prices.
OPEC, which supplies about 40% of the world's crude oil, says it will maintain production to defend its market share. The cartel also contends that actual consumption levels don't warrant the current "dramatic reduction" in oil futures. It says it won't adjust its production until it can determine the "real reasons" behind the decrease.
Oil futures closed on Friday at new 5.5-year lows for the U.S. (West Texas Intermediate at $57.81) and foreign markets (Brent crude at $61.85). Both prices are about 50% lower than they were in June.
Meanwhile, a new report from the International Energy Agency again lowers the outlook for demand in 2015, this time by 230,000 barrels per day to 900,000 bpd. IEA notes that overall global production fell in November.
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