OPEC production boost may not ease oil pricesgreenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread
OPEC production boost may not ease oil prices WebPosted Sun Sep 10 18:45:11 2000 ET VIENNA - For the third time this year, OPEC has agreed to increase the world's supply of oil. But many analysts doubt the extra 800,000 barrels a day will be enough to reduce gas prices at the pumps.
After a meeting in Austria Sunday, ministers from the Organization of Petroleum Exporting Countries announced they will be boosting oil supply on Oct. 1.
They plan to meet again on Nov. 12 to discuss whether another increase is needed to bring down the skyrocketing price of crude.
Saudi Arabia's minister, who represents the biggest OPEC producer, had suggested an increase of at least one million barrels per day the minimum amount analysts think is needed to make any dent in world prices.
What the ministers have agreed to is expected to stop the price from rising further, according to economists.
The price of oil is currently hovering at a 10-year high of between $33 and $34 US per barrel. OPEC had said it would like to push down the figure to about $25 US.
OPEC has said it's not responsible for the high price of gasoline in North America and Europe. It blames other factors, such as refinery capacity shortage, and taxes.
Sunday's announcement is not expected to have much effect on gasoline or home heating oil prices in the short term.
-- Martin Thompson (email@example.com), September 10, 2000
I don't see why this will change anything.
-- LillyLP (lillyLP@aol.com), September 10, 2000.