Opec urged to cut production

[Tom Yossarian Joad]

http://www.finance24.co.za/Finance/Economy/0,,1518-25_1440735,00.html

London - Opec member-countries, excluding Iraq, will have to cut production by at least 1 mln barrels per day next year to prevent a collapse in global oil prices, experts warned.

Herman Franssen, president of the Washington-based International Energy Associates, said on the sidelines of the Oil & Money Conference in London that the reduction will help keep prices stable at mid-$20s per barrel.

However, assuming that Iraq resumes exports at a steady 2 million barrels per day, then "Opec, minus Iraq, will have to bring down (production) by at least 2 million barrels next year," he said.

"If they do that , then they can keep prices at mid-20s," said Franssen, who was formerly chief economist of the International Energy Agency.

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[Voltaire99]

1. Just remember that's *our* oil, OPEC!

And as certain US Army generals might say, our God has a bigger gasoline pump than yours.

[Tom Yossarian Joad]

2. ANd this is on a presumed Iraqi oil production of 2 million

barrels a day.

I don't think that will be seen until we are out of Iraq,

[bluestateguy]

3. See! We need to drill in ANWR

Let this be a lesson. At best we might be able to reduce foreign dependency by about 2% with ANWR drilling, but that is a small enough margin that it still gives OPEC the power to cut production accordingly, thus having no effect on prices and still keeping us mostly dependent on foreign oil.