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US welcomes OPEC decision not to cut oil output

Written by: Staff
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Washington, Sep 12: US Energy Secretary Sam Bodman has welcomed the decision by the Organisation of Petroleum Exporting Countries to maintain oil production levels and ensure markets have plenty of crude, an Energy Department spokesman said.

At their meeting in Vienna, OPEC Ministers agreed to keep the cartel's oil output levels unchanged at 28 million barrels per day, a position the United States favored because it believes world oil demand is strong and will go higher.

''What (Bodman) is concerned about is that oil suppliers supply as much as they possibly can in order to meet growing global demand,'' the DOE spokesman said yesterday.

OPEC ministers said they could consider cutting production levels before the end of the year if oil prices fell quickly.

The price of US oil fell to 64.85 dollars a barrel yesterday at the New York Mercantile Exchange, the lowest since March 28.

Crude prices have dropped 20 percent since mid-July.

The DOE spokesman said Bodman believes the current steep drop in oil prices does not mean there is an oversupply of oil, because ''we see demand growing around the world.''

Reuters

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