OPEC Predicts High Crude Oil Prices

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Last updated at: (Beijing Time) Monday, January 14, 2002

OPEC Predicts High Crude Oil Prices

The Organization of Petroleum Exporting Countries (OPEC) is now hopeful of further increase in the prices of crude oil, the group's president Alhaji Lukman has said.

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The Organization of Petroleum Exporting Countries (OPEC) is now hopeful of further increase in the prices of crude oil, the group's president Alhaji Lukman has said.

Lukman, who is also the special adviser on petroleum and energy to Nigerian President Olusegun Obasanjo, made the remarks at a forum held here on the weekend.

Lukman expressed OPEC's optimism of higher prices, saying the group's projection is that the prices would be firm by the middle of this year.

The prices will stabilize between 20 U.S. dollars and 22 dollars per barrel at about that time, Lukman said, adding that "the prices are moving in the right direction and upward too".

The prices had hit the lowest level at the end of last year at around 19.8 dollars per barrel, shortly after the September 11 terror attacks on the United States.

To stem the trend of decrease of oil prices, OPEC members and non-members have recently signed an agreement to cut oil production by 6 percent as from January 1, 2002, under which, oil production is cut by 1.4 million barrels per day.

As a result of the cutback of oil production as well as cold weather in most European countries, oil prices are now maintained at around 21 dollars per barrel.