WASHINGTON, Nov. 7 (Xinhua) -- The United States expects the Organization of the Petroleum Exporting Countries (OPEC) to cut its production by less than announced over the course of this year, the Energy Department said Tuesday.
The OPEC's crude oil production would decline by almost 800,000barrels per day (bpd) from October levels "for the remainder of 2006," the department estimated in a monthly report on the outlook for oil and gas markets.
As a result, oil prices would be driven up several dollars a barrel, it said.
The oil cartel announced last month that it would cut its total output by 1.2 million bpd, effective a week ago, to put a floor under falling oil prices.
The OPEC's declaration "has not yet made much of an impact on world oil prices, as the market awaits evidence of substantial compliance," said the department.
Due to the OPEC production cut and rising demand for winter heating oil, prices of West Texas Intermediate (WTI) crude traded in New York would "rise by about two dollars per barrel each month over the next several months," the department predicted.
"The price of WTI crude oil is projected to average around 66 dollars per barrel in 2006 and 65 dollars per barrel in 2007," it said.