OPEC to Cut by 500,000 Barrels If Price Falls below Band LimitOPEC is determined to cut production by 500,000 barrels a day if oil prices falls bellow dlrs 22 barrel, according to a top Venezuelan oil official.OPEN operates under a self-imposed band system designed to keep its basket of seven crudes between dlrs 22 and dlrs 24 a barrel. The cartel has informally agreed to cut production by 500,000 barrels a day if prices stay below the band for more than 10 consecutive days. If prices remain above the band for 20 straight days, the OPEC increases production by the same amount. Under the agreement, Venezuela has to slice its production by 116,000 barrels a day. The OPEC basket price closed at dlrs 22.53 Monday. |
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