Fuel prices to jump as OPEC slashes output

Fuel prices are expected to surge as OPEC looks at slashing oil production to increase profit

Fuel prices are expected to surge as the Organisation of Petroleum Exporting Countries (OPEC) looks at slashing oil production to increase profit.

The cartel is to hold an emergency meeting in Vienna on October 24 to discuss the implications of the falling price in oil, which has dropped dramatically in light of recent global financial woes.

Despite fuel hitting record-highs this year and staying there as a result of a drop in the Australian dollar, OPEC wants to maintain high prices by arguing an "acceptable" figure of between $70 and $90 per barrel.

According to Chakib Khelil from OPEC, the organisation will cut output considerably because it wants "to get the balance right between supply and demand".

As a result of its efforts to achieve "balance", OPEC’s decision may send fuel prices skyrocketing to $1.80 a litre.

Venezuelan President Hugo Chavez wants a limit imposed on oil production to arrest the slide, which has seen prices plummet from as $US147 a barrel to $US71 a barrel.

It has been reported Iran wants to slash production by as much as 3 million barrels a day.

Qatar expects OPEC will agree to cut 1 million barrels a day.

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