OPEC Agrees on Production Cuts

On Friday, December 28th in Cairo, OPEC members agreed to cut crude oil output by 6.5% for a six-month period beginning January 1, 2002 to help sagging oil prices. OPEC ministers agreed to cut oil production by 1.5 million barrels per day. This is the fourth cut the cartel has made since February.

Non-Opec producers Russia, Norway, Mexico, Oman and Angola have agreed to collectively reduce crude oil output by 462,500 b/d in an effort to help the cartel buttress oil prices.

A meeting is scheduled in January in Moscow for oil ministers from inside and outside the cartel to review the accords. The next regular OPEC meeting is scheduled for March 15, 2002.