OPEC may cut oil output by one million bpd: Chief
OPEC may cut oil output by one million bpd: Chief
Agence France-Presse, Kuala Lumpur
The Organization of the Petroleum Exporting Countries (OPEC)
may cut oil production by a million barrels per day (bpd) to
boost prices, its secretary general said Monday.
OPEC ministers meeting Nov. 14 in Vienna would decide whether
to slash output by a million bpd or more if prices plunged
further, Ali Rodriguez told a press conference on the sidelines
of an Association of Southeast Asian Nations oil conference here.
He said the outcome hinged on the cooperation of non-OPEC
members in cutting output in a bid to boost prices that have
slumped to two-year lows since the Sept. 11 terror attacks on the
United States.
"We will make some decision in the next conference in Vienna.
The first is to ensure full compliance of our commitment (to
market stabilization), the second probably is to reduce
production again by one million barrels a day," he said.
"But it is very important, extremely important (to have) the
cooperation of non-OPEC producers... we need to reduce production
again in order to balance the supply with the demand."
Under the present OPEC agreement, member nations are producing
about 23 million bpd, he said.
Rodriguez described the current oversupply situation in the
global oil market as "transitory" and said he believed the
outlook would improve next year.
"We have no concerns about the medium-term or long-term but we
have to fight the problem in the short-term," he said.
Asked how far oil prices are expected to fall, Rodriguez said:
"That's impossible to say... I am not a prophet but I believe
that this is directly related to the performance by the economy.
"I am sure that next year's situation will be a little bit
better although the demand will be almost the same as this year."
OPEC has sought the support of non-OPEC producers to cut
output to prevent a collapse in crude prices. The 11-member oil
cartel has warned of a disaster if non-OPEC producers do not
coordinate action.
But major non-OPEC producers Russia, Norway and Mexico have
appeared reluctant to commit themselves to specific action.