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OPEC to cut production by 500,000 bpd from February 1: minister
AFP
ABUJA
Petroleumworld.com 14 11 06OPEC is to lower its production by 500,000 barrels per day from February 1, Algerian Energy Minister Chakib Khelil said on Thursday after a meeting of the cartel here.
"We are going to cut in addition to the cut we made already: 1.2 million barrels, plus 500,000, so 1.7 in total from the 1st February," he said.
At a gathering in October, the Organisation of Petroleum Exporting Countries, whose members produce about one third of global oil supplies, had decided to cut their output by 1.2 million bpd to stem falling prices.
Since then, prices have recovered to levels above 60 dollars per barrel, but cartel members have expressed concern about the weakening dollar, high levels of oil stocks worldwide and expectations of lower economic growth next year.
Analysts have warned that a further cut to the production target risks sending oil prices sharply higher in the coming months, which would worsen the already cloudy outlook for the global economy next year.
OPEC members seek to regulate their oil exports to control prices and are believed to favour a minimum price of about 60 dollars per barrel.
The gathering on Thursday also saw OPEC members approve Angola as a new member and nominate a new secretary general of the organisation, Abdullah al-Badri.
Badri, a former head of the National Oil Company of Libya, will replace acting secretary general Mohamed Barkindo.
AFP 141343 GMT 12 06
Copyright© 2006 AFP. All Rights Reserved.
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