OPEC production cut may not prop price
OPEC holds an emergency session in Cairo tomorrow. They want the cartel to announce a cut in output of a million barrels a day in order to prop up the price. But Stephen Beard reports it may not work.
More on Oil
TEXT OF STORY
Scott Jagow: OPEC holds an emergency session in Cairo tomorrow. A lot of its members are pushing for another cut in production to prop up the price of oil. But will that really do anything? Stephen Beard reports from London.
Stephen Beard: The falling price of crude has decimated OPEC's income. Iran and Venezuela seem to be suffering the worst. They want the cartel to announce a cut in output of a million barrels a day. They hope that declaration will prop up the price.
But it may not, says Nick McGregor of brokers Redmayne Bentley:
Nick McGregor: They all say we'll cut production by X amount, but there's no guarantee they'll actually do it. There is a lot of cheating goes on, and the temptation to pump a few extra barrels and make a few extra barrels is always there.
Even OPEC does not entirely trust its members. The cartel's most reliable output data is said to come from a network of spies watching the movement of oil tankers through binoculars.
In London, this is Stephen Beard for Marketplace.
Comments
Comment | Refresh
Post a Comment: Please be civil, brief and relevant.
Email addresses are never displayed, but they are required to confirm your comments. All comments are moderated. Marketplace reserves the right to edit any comments on this site and to read them on the air if they are extra-interesting. Please read the Comment Guidelines before posting.
You must be 13 or over to submit information to American Public Media. The information entered into this form will not be used to send unsolicited email and will not be sold to a third party. For more information see Terms and Conditions and Privacy Policy.