Opec to shore up prices

BAGHDAD: Opec is likely to decide to cut oil production targets when it meets next month, which should help prices gradually rise back above a fair price of US$70 a barrel, Iraqi Oil Minister Hussain al-Shahristani said on Saturday.

“The year 2009 will be a tough economic year. It is expected demand for crude oil will drop,” Shahristani said. “In March, Opec will meet and there is an intention to decide a further cut to shore up prices.”

Iraq, a founding member of Opec with the world's third largest reserves, is not bound by the group’s production limits but has had trouble maintaining its output — much less meeting ambitious growth targets — because of crumbling infrastructure.

“We expect that crude prices will be restored to more than US$70 a barrel, but this will not be achieved in coming months. This will happen gradually.” — Reuters