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.