OPEC oil producers faced an uphill battle on today to shore up crude prices with another round of production cuts aimed at preventing a damaging supply glut.
Ministers of the Organisation of the Petroleum Exporting Countries, gathering for a meeting tomorrow, said they would consider withdrawing supplies of up to 1.5 million barrels a day.
Fighting an economic decline that has sapped petroleum consumption, OPEC is trying to restore confidence among international oil traders in its $25-a-barrel price target.
There is an oversupply of 1.3 million to 1.5 million barrels per day and so that is the amount that needs to be cut between OPEC and nonOPEC, said Venezuelan Oil Minister Mr Alvaro Silva.
Doubts over the impact of OPEC action kept a cap on oil prices today with benchmark Brent crude trading off three cents at $20.36, down $7 since September 11th.