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OPEC to Discuss Possible Cut in Oil Quotas Under Cloud of Economic Gloom
Tuesday, September 25, 2001 (7:12 AM ET)
CNN Business Correspondent Charles Hodson contributed to this report

Economic gloom may force oil cartel to hold supplies at current levels

LONDON -- CNN
OPEC will meet on Wednesday to discuss whether to cut production, as the world economy looks down the barrel of a possible recession.

Members of the Organization of the Petroleum Exporting Countries will be under pressure not to cut quotas amid concerns any U.S. military action against Afghanistan could further damage the sluggish global economy.

"OPEC would find it difficult to cut production as it would be an effective 'kick in the teeth' to U.S. efforts to pull its economy away from recession and to reduce the negative consequences of the recent attacks on the U.S., Lawrence Eagles, oil analyst at GNI, wrote in a note to investors.

“Indeed, even if OPEC is not bothered about helping America per say, economic considerations make a lower price as sensible option," Eagles added.

Crude prices at first fell after the terrorist attacks, then spiked near $30 a barrel before a sustained fall which has now made oil more than four dollars a barrel cheaper than it was two weeks ago.
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