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To: Big Dog who wrote (78776)	11/13/2000 7:55:30 AM
From: Second_Titan	Respond to of 95453

OPEC Floor, where will it be? I suspect they will be defending ~$28 as the real floor. OPEC: To Use Price Band's Floor But Not Ceiling -Source Dow Jones Newswires VIENNA -- OPEC has reached an "understanding" to only use its price band mechanism to shore up low prices and not to cut high prices, an OPEC source told Dow Jones Newswires Monday. If the OPEC basket price falls below the bottom end of its preferred price range of $22-$28 a barrel for 10 consecutive trading days a barrel the group will cut production, an OPEC source told Dow Jones Newswires Monday. Although the price band mechanism requires the group to raise output by 500,000 b/d if the price is above $28 for 20 consecutive trading days, it is unlikely to do so, at least not before Jan. 17, the source said. "In the meantime, OPEC will continue to review the market ahead of Jan. 17," the source said. The price band of $22-$28 was established earlier this year as an automatic mechanism that would trigger an output rise or cut aimed at controling volatile oil prices. Initially, OPEC said it would cut output by 500,000 b/d if the basket price stood below $22/bbl for 20 consecutive trading days. That definition changed in June when the group agreed the price need fall below $22/bbl for just 10 days before the group would cut output to ensure a price rise. OPEC's basket price averaged $31.32 a barrel Friday, compared with $30.79/bbl Thursday. Friday was the tenth day the OPEC basket price was over $28/bbl since the price band mechanism was triggered on Oct. 27, causing OPEC to increase production. OPEC is set to meet again Jan. 17 and then March 16.