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OPEC promises ‘strict’ compliance
09/22/2008
The Organization of Petroleum Exporting Countries agreed Sept. 10 to strictly comply with their September 2007 production quota of 28.8 million b/d, implying a possible compromise for de facto reduction of some 530,000 b/d of overproduction.OPEC’s decision requires some adjustment of individual members’ quotas to include new members Angola and Ecuador and the withdrawal of Indonesia, a member since 1962. Iraq, of course, remains exempt from the OPEC quota as it tries to rebuild its oil industry. Indonesia’s exit and addition of Angola and Ecuador make “for a statement as clear as mud and for wide interpretations as to the desired level of OPEC production,” sa...
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