OPEC prepares for further production cuts

Opec is ready to cut production by a significant amount when it meets later this month in Algeria, prompted by high oil inventories, the group's secretary-general Abdullah al-Badri said today.

"We are all geared towards a cut in Algeria," Reuters quoted Badri telling a news conference in Tehran, two days after the Opec decided at a meeting in Cairo to delay a decision on a new supply reduction.
Badri said he believed an oil price of $75 per barrel would be "reasonable", echoing comments by Saudi Arabia, the world's largest crude exporter.

Saudi Arabia on Saturday cited $75 a barrel as a "fair price" for oil in order to keep the more expensive new projects at the margins of world supply on track.

Read more: Upstream Online