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OPEC holds output steady
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July 3, 2001: 2:11 p.m. ET
Oil ministers leave crude production at 24.2M barrels a day
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NEW YORK (CNNfn) - OPEC oil producers decided Tuesday to hold production steady in an effort to keep prices from falling in light of the likely return of Iraqi oil to the market.
Qatari Oil Minister Abdullah al-Attiyah said OPEC had decided to leave output on hold at 24.2 million barrels a day until the cartel's next meeting, scheduled for Sept. 26-27.
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OPEC Secretary General Ali Rodriguez Araque | |
The Organization of Petroleum Exporting Countries' move is intended to support crude near its $25-a-barrel target after prices fell in recent weeks, due to slower world economic growth that has curbed demand for energy products and pushed inventories higher. OPEC cut supply by 2.5 million barrels daily early this year.
The news will not bring any cheer to U.S. consumers, who finally were starting to get some relief from high gasoline prices just ahead of the 4th of July holiday. The average price of gas fell 17 cents to $1.55 a gallon in June from record highs in May, according to the American Automobile Association.
Oil fell 44 cents to $25.20 a barrel in London Tuesday, and prices are down nearly $5 a barrel over the last month. In New York, light sweet crude edged up 8 cents to $26.24.
Check oil and other commodity prices here
OPEC's meeting was timed to coincide with a United Nations vote Tuesday that is likely to renew existing sanctions against Iraq, including an oil-for-food program.
Iraq stopped oil sales under the program in early June to protest plans by the United States and England to replace existing Gulf War sanctions with "smart sanctions" that would tighten constraints on Iraqi imports deemed to have a military use.
Russian opposition led the countries to shelve their proposals Monday, greatly improving the prospects for a resumption of Iraqi exports. Iraq sells about 2 million barrels of oil a day.
Though their next meeting is not until September, OPEC ministers say they can intervene before then and adjust supply if prices move outside their $22-$28 range. 
- from staff and wire reports
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OPEC
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