CAIRO Ñ OPEC has agreed to eliminate excess supply in
the global crude oil market.
OPEC oil ministers announced production would be decreased by one million barrels
per day starting in 2005. The ministers have scheduled another meeting on
Jan. 30, 2005 to consider additional cuts in its 27 million barrel per day
The ministers, who met in Cairo on Dec. 10, said oil stocks were
increasing at a rapid rate and could harm the market in 2005, Middle East Newsline reported. The decision
last week would withdraw 3.5 percent of the current oil supply. Half of the
cut would be assumed by Saudi Arabia.
The United States was said to have opposed the OPEC decision. The Bush
administration has urged increased production in an effort to reduce the
price of crude oil. In late October, oil reached a record high of more than
$55 a barrel.