OPEC and hurricanes

09/15/2008
The oil market fell subject to more tugs and pushes than usual last week as the Organization of Petroleum Exporting Countries acted to support the price of crude and the second hurricane in 2 weeks threatened production and refining in and near the Gulf of Mexico. It was enough to make the unattentive forget that the fundamentals of supply and demand have taken a sharp turn.It was with an eye on that turn that OPEC on Sept. 10 agreed to lower group production to the target set a year earlier for members other than Iraq. After adjustments for new members Angola and Ecuador and departing member Indonesia, the target became 28.8 million b/d. That’s 570,000 below August production repor...

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