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OPEC Will Cut Output By One Million Barrels, Or 4%, Starting April 1; But Crude Drops 49 Cents; U.S. stockpiles are rising, and experts doubt cartel will follow lower quotas.(A)

Investor's Business Daily

| April 01, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: CHRISTINA WISE

Despite some internal debate, OPEC said Wednesday it'll go ahead and scale back production by 4% starting April 1. But crude prices fell on another strong rise in U.S. stockpiles.

The Organization of Petroleum Exporting Countries agreed at its Vienna meeting to cut its official production target by 1 million barrels a day.

Kuwait and the United Arab Emirates, worried prices are too high, reportedly wanted the cut to be delayed. But Saudi officials pushed for its implementation.

Also Wednesday, the Energy Information Administration said U.S. crude stockpiles rose 5.7 million barrels to 294.3 million, the highest since August 2002. It was the sixth gain in seven weeks.

New York May crude oil futures fell as much as $1.40 a barrel, but closed down 49 cents to $35.76.

Gasoline futures, which hit an 18-year high intraday, reversed after U.S. gasoline inventories rose for the first time in weeks.

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