Archive for Thursday, September 10, 2009

OPEC leaves output targets unchanged

September 10, 2009

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— OPEC is leaving its production quotas unchanged, opting to take a cautious approach in a market awash in crude and a global economy still in the early stages of recovery.

The 12-nation Organization of Petroleum Exporting Countries early today said “market fundamentals have remained weak,” even though current oil prices at about $71 are roughly double their level since December, when the group announced a record 4.2 million barrel per day cut from September 2008 levels.

The meeting’s closing communique said “whilst there are signs that economic recovery is under way, there remains great concern about the magnitude and pace of this recovery,” especially in the West. The group noted uncomfortably high crude and refined product levels, which reflect that refiners are not eager to churn out additional product.

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