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Oil Production To Be Cut

Opec recently anounced that they will cut one million barrels of oil a day from their production. This cut comes while there is a surplus of oil. Opec has not had to cut oil production in two years. On an average Opec pumps 29.74 million barrels a day. Opec has reported a two year stock high from oil production. This cut will send gas prices above $60.00 per barrel again. Prior to the planned cut Saudia Arabia reported a 23% drop in price of their exported oil. For more information on the statistics and reports coming from Opec visit the linked site.

In my opinion, OPEC is over controling the price of oil sales. A group should be set up to monitor the sales of oil because it appears that OPEC is cutting production because they dont want to lose their massive summer income. A check and balance system for this company should be in place and other countries should try and compete against OPEC and sell their own oil.

posted by Anonymous @ 10/05/2006 09:06:00 PM