Reply #67: Opec to cut production [View All]

[aneerkoinos]

"ALGIERS (Reuters) - OPEC on Tuesday agreed a surprise cut in supplies from April, propelling world oil prices higher and drawing a caution from the United States not to hurt economic growth.

The deal slices four percent from production limits for the group that controls half the world's oil trade to 23.5 million barrels a day, effective April 1.

Ministers said the Organization of the Petroleum Exporting Countries would also immediately eliminate 1.5 million barrels a day of leakage being pumped above existing supply quotas.

Oil prices rose on the pact, a repeat of last September's unexpected supply reduction.

U.S. crude by 1700 GMT (noon EST) was up 59 cents at $33.45 a barrel, valuing OPEC's reference basket well above the group's preferred $22-$28 target range. "

SNIP

"``It is our hope that producers do not take actions that undermine the American economy ... and American consumers,'' said a spokesman for the White House."

more...
http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20040210&ID=3377938

Why is it called surprise cut? Because the oil consumers wished they wouldn't and habitually present wishfull thinking as insider rumours and news?