India-First-Global-Insights-Analysis -Sharing-PlatformIndia-First-Global-Insights-Analysis -Sharing-Platform

OPEC sets 30 mln barrel/day oil output cap

, December 14, 2011, 0 Comments

Vienna, December 14, 2011 : OPEC, the oil cartel, on Wednesday reached an agreement capping the group’s crude oil production at 30 million barrels a day(bpd). While the deal set an overall output cap, it said that the deal did not set production limits on individual countries. Opec’s secretariat calculates that 30 million barrels a day from Opec will meet demand in the first half of the year and build stocks by 650,000 bpd. Saudi and other Gulf producers would prefer lower prices to help nurture global economic growth. The UAE said recently that $80-$100 was preferable. Chief economist at the International Energy Agency(IEA) Mr. Fatih Birol said that “Saudi Arabia is the central banker of the oil market and the decision that they will bring more oil to the market is definitely a good one”.