Friday, Jun 15, 2012
By James Herron
VIENNA--Most members of the Organization of Petroleum Exporting Countries have agreed to reduce their oil production in line with their output in November 2011, which will bring the group back in line with its 30 million barrel a day production ceiling, said Secretary General Abdalla Salem el-Badri Friday.
These cuts will probably begin some time in July, and OPEC will monitor on a monthly basis whether countries are supplying oil in accordance with their production allocations, Mr. El-Badri said.
According to OPEC reports, Saudi Arabia's production in November was 134,000 barrels a day lower than its level in May.
Libya will not be required to adhere to its November production, when it was still recovering from the war, he said. Iraq is still not subject to any individual quota, he said.
Even an oil price as high as $110 a barrel would not be a threat to the world economy, he added.
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(END) Dow Jones Newswires