OPEC'S DECISION TO RETAIN CURRENT QUOTA PUSHES CRUDE OIL PRICE PAST $25

Hart's Petroleum Finance Week, March, 2002

The Organization of Petroleum Exporting Countries (OPEC) has decided to maintain its current production quota until the end of June, sending crude oil futures on the New York Mercantile Exchange past the $25 a barrel mark for the first time since Sept. 11.

Over the past year, OPEC has sliced 5 million barrels per day (b/ d) from its quota to reach its current target of 21.7 million b/d target. Cartel members were reluctant to predict what might happen when they next meet June 26 during the summer driving season. "It depends on the circumstances," OPEC President Rilwanu Lukman told reporters following the meeting. "When June comes, we will see what the market is calling for."

But in his opening remarks at OPEC's March 15 meeting in Vienna, he indicated that...

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