Opec nations raising oil prices in budgets

Most Opec producers have for 2007 raised the oil prices on which they base their budgets, reducing the amount in reserve, as they grow more reliant on ready cash.

Emboldened by a four-year price rally, many have embarked on major spending projects and, having paid down foreign debt, can afford to spend now as well as later.

But they remain cautious and targets set by Opec, just like those used by international oil companies, still tend to be well below the market in part as a precaution against any price collapse.
Gulf Daily