Wednesday, March 18, 2009

OPEC, IMF Say Lower Oil May Cause Crunch as Economy Recovers




Posted by Pin-Yu Liao

OPEC and the IMF said lower oil prices are cutting investment in new fields, risking a supply crunch when the global economy recovers.
“I don’t think that with a $40 price, or $45 a barrel, as we see it now, we can invest in any additional capacity,” the Organization of Petroleum Exporting Countries’ secretary- general, Abdalla El-Badri, said today at a seminar in Vienna hosted by the group. Lower prices have forced OPEC nations to delay 35 of 150 planned production projects, he said.


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