Tuesday, September 12, 2006

Please Explain

I know I learned economics in a government school, but these two statements seem contradictory to me...
OPEC has been doing as much as it can to restore prices to reasonable levels.
and
OPEC made clear that it would keep close tabs on prices, which have recently fallen to five-month lows, and consider a cut in output quotas later in the year.
Now, wouldn't a reduction in output keep the price up? I guess this all hinges on their definition of "reasonable levels". After all, we wouldn't want the prices to be unresonably low like they were 5-6 years ago.

The article.

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