Ministers of the Organization of Petroleum Exporting Countries are scheduled to meet on March 16 and are likely to announce a cutback in production to stem steadily falling oil prices.
After hitting a 10-year high of $35 per barrel in late 2000, the price of oil has fallen closer to $26 in recent months, causing OPEC to be concerned about future prices. OPEC’s target oil price is $25 per barrel.
The BBC reported that OPEC might cut world oil production by up to one million barrels per day in an effort to keep prices from falling too much farther.
How much oil does OPEC have left to sell? It estimates that at current production levels its member countries have proven reserves to last at least 80 years.
Source:
Oil weak ahead of OPEC meeting. The BBC, March 14, 2001.