OPEC holds production targets.

08-Jun-2015

In a move that many have seen as counter intuitive, OPEC once again decides to hold production targets.

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OPEC holds oil output target, predicts low prices

VIENNA - OPEC decided to keep its oil output target on hold Friday and predicted prices would remain low for the foreseeable future - good news for both for oil-hungry international industries and consumers at the gas pump.

The cartel said its output level would remain at 30 million barrels a day despite the fact that prices were still low compared with a year ago. It left it to member states to restrain any overproduction, an acknowledgment of the cartel's inability to enforce its own limits as it struggles to control world supply and prices.

With non-OPEC oil producing countries ready to ramp up production if prices go much above present levels, OPEC's secretary general said the cost of crude will stay relatively low for a while.

"The reality now is that we cannot have these S100 (prices) anymore," Abdullah al-Badri told reporters. (CBS Market Watch)

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