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OPEC may cut oil supplies in 2 rounds: Khelil
(Agencies)
Updated: 2008-10-20 13:41 ALGIERS – OPEC oil producers may cut oil supplies in two rounds, one when they meet next week in Vienna and a second later on, to drain oil supply surplus off markets and firm up prices, the group president on Sunday. "It is not clear that we will take the decision to reduce supplies by 2 million barrels per day but it very likely that we will take a reduction decision this time and another decision later on to ensure prices stability," Chakib Khelil told Algerian state television. The comments come before the Organization of the Petroleum Exporting Countries holds an emergency meeting on October 24 in Vienna to discuss the impact of economic weakness on oil markets. Pressure is mounting within OPEC to reduce supplies as oil prices have fallen more than 50 percent from July's record of $147.27 and expectations have grown that a global recession will erode fuel demand. "I think firstly there is a consensus over the meeting among OPEC members, then an urgency for all members. So, there is no doubt that all members agree that oil inventories are very high and supply is higher than demand by around 2 million barrels per day," said Khelil. He said OPEC could hold a meeting ahead of its planned gathering in Algeria on December 17. "I think that in the upcoming period (between October24 and December 17) there would be change in oil prices. And because of that, a meeting must take place or at least close coordination among OPEC members to take the right decision at the right time," he added. Khelil, who is also Algeria's energy and mining minister, dismissed calls by Western governments for OPEC to avoid cuts, saying OPEC producers are entitled to defend the value of their earnings from oil exports. "All the needs of consumer countries will be fully satisfied because OPEC members want not to see the global economy deteriorating as it is now," he added. |
