Report: OPEC has lost control over oil prices

Friday, September 24, 2004

LONDON OPEC members have lost control over the oil market.

A report by the Center for Global Energy Studies asserted that the price of crude oil was no longer under OPEC control, Middle East Newsline reported. The report said OPEC, with spare production capacity of 1.5 million barrels per day, does not have sufficient capacity to significantly reduce oil prices, which have exceeded $47 a barrel.

"This leaves only the thinnest margin to cope with the unexpected and the market is worried that it could quickly be used up in the event of an interruption to supply or a cold winter," the report said.

The center said OPEC production in the third quarter of 2004 reached 29.19 million barrels per day. The figure did not include Iraq.

Copyright 2004 East West Services, Inc.

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