Opec rules out further cuts

29/05/2009

The Organisation of the Petroleum Exporting Countries (Opec) has announced that it will hold off from making any further production cuts, in line with many analysts' predictions.

Following the 153rd meeting of the Opec conference, the cartel issued a statement announcing that while it had drawn optimism from furtive signs of economic recovery, global economic stability was in a very fragile state, with high unemployment and falling international trade presenting immediate risks.

"For this reason, the conference decided to maintain current production levels unchanged for the time being. In taking this decision, member countries reiterated their firm commitment to the individually agreed production allocations," the group explained.

Instead of cutting quotas any further - supply has already been limited by 4.2 million barrels a day - Opec will now focus on ensuring that all 13 members are complying fully with the cuts and continue to monitor oil trading closely.

Crude prices have risen more than a quarter (28 per cent) since the beginning of May, with rallies following on from strong equities performance and a weakened dollar.