ABUJA (Reuters) - OPEC has agreed an oil output cut of 500,000 barrels per day, or two percent, delayed until February1 when the northern winter is ending, the group said on Thursday, sending oil prices above $62.Unless we have a fairly serious recession next year, plan on $3+/gallon gasoline next spring.
By postponing a further reduction until peak demand has passed, OPEC is acknowledging importer nations' concern that a cut now will drive prices higher and hurt their economies. World economic growth is expected to slow next year.
"We are committed to supplying the market but we want to establish a balance between supply and demand," said OPEC President Edmund Daukoru. He confirmed Angola would become OPEC's 12th member in 2007, giving the cartel even more muscle.
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