OPEC oil ministers, shrugging aside consumer concerns about energy inflation, start arriving in Vienna today for a meeting that appears certain to sanction a deep cut in crude supplies.
Determined to underpin the price of OPEC oil at $25 a barrel, producing countries say they will push ahead with export curbs of about 1.5 million barrels a day, just over five per cent.
"All our figures indicate that there has been oversupply of crude over the past few months and stocks at the level of the consumer have risen sharply," OPEC Secretary-General Mr Ali Rodriguez said.
The cut in production is aimed at stabilising prices within the $22-$28 price band for OPEC's basket.
Crude still remains much cheaper than the 10-year peak of $37 for US crude seen last October.
OPEC ministers remained defiant over the weekend despite heavy lobbying from outgoing US energy secretary Mr Bill Richardson, on a whirlwind tour of six producer nations.
Reuters