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FINANCIAL NEWS
OPEC to keep oil production at 30m bpd
28 Nov 2014
(MENAFN) The ministers of the Organization of Petroleum Exporting Countries (OPEC) announced that they have decided to maintain their output level of oil despite crude oil price falling to a four-year low level, Xinhua reported.
The decision to maintain oil production at the level of 30 million barrels a day was agreed upon by ministers despite countries like Iraq and Venezuela suggesting a pricing cut and oil prices plummeting to below 74 dollars per barrel, which is the lowest level since September 2010.
On the other hand, Gulf oil producers, mainly Saudi, UAE and Kuwait, supported the decision, though they agreed that OPEC needs to discuss the major issues facing oil production, mainly the over-supplied market as well as the competition from US-produced Shale oil, which together along with the slow economy in both Europe and China had made things difficult for OPEC, which produces a third of global oil output.
‘The US is producing in a very, very bad manner. Shale oil, I mean it is a disaster from the point of view of climate change and the environment,’ Venezuelan Foreign Minister, who represents his country at Opec, said.
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