OPEC seeks to reduce output to boost prices

March 15, 2009

THE ASSOCIATED PRESS

VIENNA - OPEC ministers called yesterday for an end to overproduction by . some members as they sought to slice nearly a million barrels per day from world supply and boost prices - but without further shocking the anemic global economy.

Their comments suggested that today's oil ministers' meeting of the Organization of the Petroleum Exporting Countries might opt for a call on all members to honor production quotas, instead of deciding to slash out- put outright.

Most members of the 12-nation organization had been clear in favoring reduced output in the days preceding Sunday's full meeting.

Still they had left open whether they want to lower output quotas - or if they favor a solution less likely to hurt the global economy by simply seeking to end overproduction by some nations above levels allotted to them.

Algerian energy and mines minister Chakib Khelil.called for both. "Comply and cut," he said when asked what he preferred.

'OPEC cuts agreed on since September were meant to take a daily 4.2 million barrels off the market. But the II members under production quotas are still overshooting their joint daily target level of just under 25 million barrels by about 800,000 barrels.

OPEC regularly overproduces. But even if the group cannot fully meet its target, more quota discipline would lead to reduced world supply at a time of depressed demand, even if OPEC succeeds in taking no more than a few hundred thousand barrels more off the market. That could be enough to raise prices moderately, without sending shock waves- through shaky world economies.

Prices have rallied from below-$35 a barrel last month, with a. barrel of benchmark crude fetching over $46 on the New York Mercantile Exchange Friday.

Americans still wary of possibility of rising gas prices

February 3, 2009

According to an article published in Washington D.C. (Reuters) on Tuesday February 3, 2009 by Tom Doggett, American drivers are looking to become fuel efficient even though fuel prices are at a five year low.

The plummeting gas prices last season have not removed the concern of consumers at the gas station that prices won't again skyrocket and also U.S. foreign oil dependency.

According to Mark Cooper, Research Director for the Consumer Federation of America - most American drivers list fuel economy as important in future vehicle purchases, he stated "The persistence of great concern about gas prices and dependence on oil imports shows a strong base of public support for significant improvements in motor vehicle fuel economy."

The consumer group polled adult Americans, the results ascertained that 76% were concerned with gasoline prices and the same amount with the U.S.'s dependence on the Middle East crude oil supply.

The article continued saying that those surveyed want fuel efficiency because they feel prices will rise again and they would like buy their next car that could get at least 30 miles per gallon, also that consumers would be quite disappointed when they go shopping for fuel-efficient cars because hardly any do so!

The Reuters article quoted Consumer Federation of America's car expert Jack Gillis "At least to date, Americans view low gas prices as an aberration and they are expecting higher gas prices in the future, they are adjusting their driving habits as well as planning to purchase more fuel efficient vehicles."