OPEC to cut production if oil price drops to below US$21

The Organization of Petroleum Exporting Countries (OPEC) will cut its production by 500,000 barrel per day if the oil price drops to below US$21 per barrel for 20 consecutive days, according to Minister of Mines and Energy Susilo Bambang Yudhoyono.

Susilo was quoted by the Neraca daily on Tuesday as saying that this was part of the consensus reached at last month's OPEC meeting in Wina.

OPEC decided at the meeting to raise its production quota by 1.7 million barrel in a bid to help stabilize oil price, which at the time soared to as high as $30 per barrel.

Susilo said that OPEC had already anticipated the current drop in oil price, but the organization would continue to take a close eye on how much further the price would go down and how long. (*)