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Iran, Venezuela voice concern on 'unstable oil market'
AFP
TEHRAN
Petroleumworld.com 10 11 06
The oil ministers of Iran and Venezuela on Tuesday expressed concern over the "instability of the oil market" amid growing calls from OPEC members for a production quota cut, state television reported.
Iran's Kazem Vaziri-Hamaneh and Venezuela's Rafael Ramirez in telephone talks backed holding an emergency meeting of OPEC to decide a cut in the output quota of 28 million barrels per day to shore-up slumping crude prices.
Vaziri-Hamaneh had earlier this week said Iran, OPEC's second largest producer, would back moves by OPEC to cut production and also supported holding an emergency meeting to make such a decision.
The two OPEC ministers hailed efforts by OPEC President Edmund Daukoru to "increase coordination among the members for taking a decision and a practical measure to stabilize the market situation", the report said.
The OPEC president has proposed to cartel members that they should cut their oil output by one million barrels per day (bpd) but no agreement on this has been reached, a spokesman told AFP on Monday.
Daukoru made the proposal in a letter sent to ministers of the Organization of Petroleum Exporting Countries, and consultations continued, he added, though for now, no meeting of OPEC ministers was planned.
Iran's OPEC representative meanwhile confirmed that OPEC members were trying to reach a consensus on cutting the official output ceiling by one million bpd.
"Efforts continue by OPEC members to agree on a one million bpd cut in oil production from the organization's ceiling and create stability in the market," Hossein Kazempour Ardebili was quoted as saying by the energy news agency Shana.
"There are also consultations going on for defining the date for an emergency meeting to take place as soon as possible."
He added however: "Given the current conditions, maybe there is no need to hold the emergency meeting to announce the members' agreement for a decrease in production."
New York's main contract, light sweet crude for delivery in November, added 42 cents to 60.18 dollars per barrel in electronic deals before the official opening of the US market.
In London, Brent North Sea crude for November delivery rose by 53 cents to 60.36 dollars per barrel in electronic trading.
AFP 10 1414 GMT 10 06
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