OPEC not expected to cut production
TEXT OF STORY
MARK AUSTIN THOMAS: The price of oil is still falling. At one point this morning U.S. light crude dropped more than 40 cents and slipped below $66 a barrel. Members of the oil producing group OPEC meet in Vienna today. But, as Stephen Beard reports from the European Desk, they’re not expected to push up prices — at least not yet.
STEPHEN BEARD: The temptation for OPEC to cut production and squeeze supplies is pretty strong.
Crude prices have now fallen to a five month low, due among other things to the continuing ceasefire in Lebanon.
Oil producers who’ve been reveling in a price of well over $70 a barrel can’t be happy. But oil traders are not expecting OPEC to cut their output today and try to push prices back up again — at least not for the time being, says Rob Lachlan of Mann Financial.
ROB LACHLAN: There’s a certain feeling within the cartel that they are obviously trying to support the rest of the world in the summer months. But they’ve made it fairly clear that a cut in production is likely at the next meeting which will be in December.
He says that although the market has been pushing crude prices lower, traders are nevertheless bracing themselves for a bounce back.
In London, this is Stephen Beard for Marketplace.
THOMAS: U.S. gas prices are also falling. The price at the pump has slipped nearly 22 cents in the past two weeks. The national average is $2.65. That’s about 35 cents less than a year ago at this time.
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