CGES Warns OPEC Against Cutting Oil Production Too Soon

‘Should total OPEC output be reduced to around 29.5 mln for the latter half of 2005 … prices will shoot back up to 51.3 usd a barrel in the third quarter and over 55.3 usd a barrel by the end of the year for dated Brent, giving an average price for 2005 of over 50 usd a barrel…,’ the CGES said.

US refining capabilities are also being scrutinised. Last year, US refinery runs rose by more than 1 mln bpd between the beginning of April and the end of May. This year there had been no increase by the middle of May and runs are almost 0.5 mln bpd down on last year, it added.
Forbes