OPEC Decides to Maintain Current Production Level

The Organization of the Petroleum Exporting Countries (OPEC) decided Tuesday to maintain its current production level following the Iraqi announcement to halt its crude export.

The decision was made at a meeting held to review the oil market situation and supply and demand expectations for the forthcoming period.

In view of the Iraqi announcement to halt crude oil export of 2.1 million barrels a day, the conference decided to convene an extraordinary meeting in Vienna on July 3 to review the market situation and take whatever measures are considered appropriate at that time, said an OPEC press release.

Iraq halted crude exports as a protest against the UN Security Council's decision to extend by one month instead of the usual six months the program under which Iraq can sell oil for food.

Oil prices are stable at present, with the year-to-date average of the OPEC Reference Basket price at 24.8 US dollars per barrel, still within the agreed range of 22-28 dollars.

If the present conditions continue, the balance presently observed in the market is expected to continue until year-end, said the release.

OPEC countries officially produce 24.2 million barrels of crude a day. Iraq is the third largest producer among them. But because the United Nations regulates its exports, Iraq doesn't participate in production agreements with OPEC's other 10 members.

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