Opec, Non-Opec Launch Official Output Cuts in Skeptical

Oil Daily, The, January, 2002

Opec, Non-Opec Launch Official Output Cuts in Skeptical Market

The output pact between Opec and non-Opec had been preceded by a near-deafening crescendo on the producer group's propaganda drums, so that few traders had any doubts about what kind of announcement would emerge from the ministerial meeting in Cairo last week.

As a result, prices reflected that perception well in advance of the Dec. 28 meeting, and reactions to the actual communique were distinctly muted. February West Texas Intermediate (WTI) futures on the day did manage a high of $21.50 per barrel, up 60[cent] -- but then settled at $20.41 for a loss that day of 49[cent].

Brent didn't do much better. Having reached a $20.90/bbl high, up 56[cent], the contract closed at $20.30, down...