Oil prices rose sharply Monday as OPEC announced that member states will delay many planned production projects. The oil market also was supported by optimism that the Obama administration would win congressional approval this week for a massive U.S. economic stimulus plan. Light sweet crude oil for March delivery was up nearly $1.50, approaching $42 a barrel, in midday trade on the New York Mercantile Exchange. OPEC Secretary-General Abdalla el-Badri said the cartel would postpone 35 of 150 new oil and natural-gas projects. The OPEC chief said the cartel is close to completing its previously announced output cut of 4.2 million bpd, and he said it appeared to be implementing promises of production cuts more thoroughly than expected by some in the oil market, with 80 percent compliance. El-Badri also disclosed that the organization would hold its next supply-policy meeting on March 15 in Vienna. “If we think we still need more action, I'm sure the conference will take more action to stabilize the market,” he told reporters in London.
