VOL. XLVI

No 18

05-May-2003

OIL PRICES/OPEC

Crude Prices Stabilize As OPEC Clarifies Intentions

Markets were confused early last week by OPECs 24 April decision to reduce supplies by 2mn b/d, by means of a revised quota target which, at 25.4mn b/d, was actually higher by 900,000 b/d than the previous ceiling (MEES, 28 April). While the raised quota was to some extent a political necessity, traders saw the supply cut and quota increase as conflicting signals, and feared a potential flood of crude....