Abuja, Nigeria – The Organization of Petroleum Exporting Countries said Thursday it will take a half-million barrels a day off the market starting in February, cementing its apparent intention to do or say what it takes to keep oil prices near $60 a barrel.
The cartel, which pumps a third of the world’s crude oil, helped stabilize falling oil prices in October when it announced a cut of 1.2 million barrels a day. But expectations of slower economic growth and a non-OPEC supply surge in 2007 meant the market was still vulnerable to a price collapse.
To prevent that, OPEC sent a clear signal to the market, and energy traders reacted, sending oil prices up by more than $1 a barrel.
Wood Mackenzie oil analyst Ann-Louise Hittle described OPEC’s action as “an aggressive approach” intended to put a floor underneath prices.
By delaying the cut until February, however, the cartel left itself a window to change its mind if demand spikes because of a colder-than-expected winter or a stronger economy.
