OPEC seeking support from non-OPEC countries

Agence France-Presse, Vienna

Experts from the OPEC oil cartel met Monday with non-OPEC producers to seek support for an output cut to boost crude prices, which have slumped to two-year lows since Sept.11.

The 11-member Organization of Petroleum Exporting Countries (OPEC) is warning of an oil price war if major non-OPEC producers like Norway and Russia do not coordinate action to prop up prices.

"The idea is to present our case that they (non-OPEC states) have to understand the real disastrous conditions that could result if they don't cut, or at least freeze production," an OPEC source told AFP.

OPEC, which produces 40 percent of the world's crude, faces a dilemma in responding to the price slump, which is a serious blow to its member countries' oil-dependent economies.

Normally it would slash production to boost prices, but is wary of doing so when major industrialized economies are feared to be heading into recession, hastened by the Sept.11 terror attacks.

OPEC ministers meet again on Nov.14, and are trying to coordinate action with non-OPEC states, to ensure that whatever action they take achieves the desired effect on prices.

Monday's meeting was not expected to produce a decision, but could result in recommendations for next month's ministerial gathering.

"It's basically a brainstorming session, trying to put some pressure on non-OPEC countries to understand the economic hardships that could be suffered by OPEC and non-OPEC countries alike," said the source.

"It's not really a pleasant picture and if they don't act quickly I think we could have a price war on our hands and that's one thing that OPEC doesn't want," he said.

As well as experts from OPEC, representatives attending the meeting Monday included counterparts from Norway, Russia, Angola, Egypt, Kazakhstan and Mexico.

None of the experts said anything as they arrived for the meeting at OPEC's Vienna headquarters, although OPEC Secretary General Ali Rodriguez could talk to reporters afterwards, possibly at the end of the day, the source said.