OPEC calls special talks, warns of delay cut<\/p>\n
Michael Thurston, Agence France-Presse, Vienna<\/p>\n
The OPEC oil cartel, in a tense stand-off with rivals over how
\nto boost sagging prices, confirmed Monday it will meet for
\nspecial talks in Cairo next week -- and warned it could delay an
\noutput cut if other producers fail to play ball.<\/p>\n
The 11-member grouping, which produces 40 percent of the
\nworld's crude, could even announce this week a one-month delay of
\nthe production cut, currently scheduled for January 1, said an
\nOPEC source.<\/p>\n
\"Maybe we will wait another month, maybe the first of
\nFebruary,\" said the source, confirming that Organisation of
\nPetroleum Exporting Countries (OPEC) ministers will meet in Cairo
\non December 28.<\/p>\n
An announcement about a delay could be made Tuesday.<\/p>\n
\"We might announce something tomorrow. Because you cannot wait
\nanother two weeks, and say OK because we're meeting on the 28th
\nwe're going to delay the action. You have to say that right now,\"
\nhe said.<\/p>\n
OPEC agreed in mid-November to cut its production by 1.5
\nmillion barrels per day (bdp) from January 1, on condition that
\nnon-OPEC rivals cut by 500,000 bpd.<\/p>\n
Major non-OPEC producers, notably Russia and Norway, have
\noffered to cut their production, but so far not by the combined
\n500,000 bpd demanded by OPEC.<\/p>\n
Russia has been the main target of OPEC criticism. Initially
\nMoscow offered a tiny 30,000 bpd cut, a fraction of its
\nproduction of seven million bpd. But under pressure it raised its
\noffer to 150,000 bpd.<\/p>\n
According to OPEC, Mexico has so far pledged a 100,000 bpd
\ncut, Norway 100,000-200,000 bpd, Oman 40,000 bpd, while Angola
\nconfirmed last Friday that it would cut by 22,500 bpd.<\/p>\n
OPEC, which fears that non-OPEC rivals would simply increase
\ntheir market share if it cuts production unilaterally, says it
\nwants clear commitments from its rivals.<\/p>\n
\"There is some concern among ministers that unless they have
\nsome kind of written commitment from non-OPEC to come up with
\nsome fixed numbers upon which we can base our upcoming decison,
\nthey will have nothing to discuss,\" he said.<\/p>\n
In London on Monday crude prices fell in early deals. A barrel
\nof Brent North Sea reference crude for February delivery fell 43
\ncents to 18.72 dollars a barrel.<\/p>\n
The market has see-sawed in recent weeks as it anticipates a
\nbroad deal between OPEC and its rivals to restrict global supply
\nin line with falling demand.<\/p>\n
Crude prices slumped dramatically in the wake of the September
\n11 terrorist attacks, which have deepened an already approaching
\nglobal recession expected to slash demand for oil.<\/p>\n
Meanwhile OPEC Secretary General Ali Rodriguez was returning
\nto Vienna on Monday, after attending a regional meeting in the
\nCaribbean, and would be working on the issue, he said.<\/p>\n
The Arab-dominated cartel has pencilled in the Cairo meeting
\nlast week, saying its ministers would gather if non-OPEC rivals
\nhad failed to agree the required 500,000 bpd cut. On Monday the
\nOPEC source said the Cairo meeting will definitely take place.<\/p>\n
The date and venue of the meeting are linked to an already
\nscheduled meeting of the Organization of Arab Petroleum Exporting
\nCountries (OAPEC) in Cairo on December 29. Most OPEC members are
\nalso OAPEC members.<\/p>",
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