OPEC Finds Price Range to Live With

Members of OPEC

From: http://www.nytimes.com/2007/12/06/business/worldbusiness/06opec.html?_r=1&oref=slogin By Jad Mouawad

When oil prices hit the milestone of $100 a barrel a few months ago, the Organization of the Petroleum Exporting Countries (OPEC) tried to expand the production and kept the prices down. While in January, barrels of oil were near $50 and falling, OPEC just cut supplies to increase the prices. OPEC realizes that oil-exporting countries play an important role on deciding how much oil to pump.

OPEC officials want to defend a price that will not hurt the world economy. Analysts say that the new target price is $70 to $80 a barrel. At Abu Dhabi, OPEC had a one-day meeting to discuss the problem they face. Many oil-producing countries want higher prices to develop their economies. They state that higher prices offer benefits to consumers such as energy efficiency. They wants to find a price low enough that will both benefit their nation’s economic and their own people. They reject to lift output of oil. When Saudi Arabia had a plan to output 500,000 barrels a day, members of OPEC just opposed it. Members of OPEC said that they would meet again in February to review the prices and supply levels.