OPEC Cuts Supply to 14-Month Low as Economy Threatens Demand
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OPEC reduced production to the lowest level in 14 months as budget wrangles in the U.S., speculation about stimulus measures in Japan and Europe’s struggle to boost growth clouded the outlook for fuel demand.
The Organization of Petroleum Exporting Countries cut output by 465,000 barrels a day in December to 30.4 million, the lowest since October 2011, led by a reduction in Saudi Arabia, the group said today in its monthly report, citing secondary sources. That’s 800,000 a day more than the average 29.6 million the group estimates it will need to provide this year. OPEC kept its 2013 global demand forecast unchanged.