A substantial reduction in crude supplies

Published: 20 January 2001 y., Saturday
The Organization of Petroleum Exporting Countries agreed Wednesday on a substantial reduction in crude supplies that aims to keep oil prices afloat near $25 a barrel. Ministers backed a proposal from Saudi Arabia for a cut of 1.5 million barrels a day that lowers limits for 10 members to 25.2 million.THE CUTS, which are to take effect Feb. 1, are aimed at keeping crude prices firm ahead of an expected slowdown in U.S. economic growth and diminishing seasonal demand for refined products such as heating oil. OPEC adopted the policy despite fears among major importing nations that it could spell trouble for the slowing economies of the West by raising energy costs again. The United States and the European Union had urged producers to make only a modest reduction.After the deal, U.S. light crude eased 54 cents a barrel to $29.75. London Brent blend lost 51 cents to $25.00.
Šaltinis: Associated Press
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