OPEC cancels plan to increase production

Members of the Organization of Petroleum Exporting Countries (OPEC) have agreed to cancel their plan to increase production quota by 500,000 barrels per day during the organization's recent meeting.

Maizar Rahman, the Indonesian representative in OPEC, said the current production which had reached about 28 million bph following an increase of about 500,000 bph during the first weeks of July would be more than enough to meet the world's oil demand.

Almost all of the organization's members including Venezuela and Saudi Arabia agreed not to increase the production quota until the price of the crude oil in the world's market exceeded US$60 per barrel.

According to him, the price of the crude oil has started to decline from the current level of US$60 per barrel due to an over supply in the world's market. He said there was an oversupply of about one million bpd in the world's market at present. (dino)