  |
|
OPEC output cut possible in December: Venezuela
AFP/Graphic
Graphic showing OPEC's share of world crude oil reserves.OPEC could decide on another production cut at a December meeting in Abuja, Venezuelan Energy Minister Rafael Ramirez has said.By Elio Ohep
Petroleumworld
CARACAS
Petroleumworld.com 11 08 06
OPEC could cut oil output further next month if prices continue to fall, Venezuelan Energy Minister Rafael Ramirez said Tuesday* in Caracas,"OPEC could decide on another production cut at a December meeting in Abuja"."The oil market is not currently stable" despite the oil cartel's decision last month to reduce output, Ramirez said to the press, at the Venezuelan oil company PDVSA educational institute in gathering with workers from the operational areas.
OPEC is evaluating the market's evolution and " decide a cut in output if the market remains unstable," he added.
Saudi Arabian Oil Minister Ali Naimi reiterated Tuesday that there is a "very high probability" that OPEC, in December , will take further steps to balance with a new production cut, news agencies reported.
Speaking to reporters in Abu Dhabi ahead of a meeting of oil ministers from the Gulf Cooperation Council, Naimi said: "Our aim is to balance the market and we have taken measures in the last meeting in Doha,"
"We will look at the numbers, we will assess the market, if it is out of balance we will take some more action," Al Naimih added.
On Wednesday, EIA said in its Short Term Energy Outlook for November, OPEC's crude output in October rose 30,000 b/d from September to 29.67 million b/d, as gains in Nigerian and Algerian production were partially offset by a decline in Iraqi output.OPEC's 10 members pumped 27.77 million b/d last month, up 130,000 b/d, EIA said in its Short Term Energy Outlook for November.
OPEC decided last month in Doha, Qatar, to cut production by 1.2 million b/d from November 1, using a baseline of 27.5 million b/d for the OPEC 10 and putting their new limit a 26.3 million b/d.
Several members, like Venezuela, have announced they have started the cut, but markets have reacted with skepticism as the move's effects have so far failed to materialize.
Wednesday, oil prices rose as traders awaited the latest weekly update on crude inventories in the United States.
New York's main contract, light sweet crude for delivery in December, added 22 cents to 59.15 dollars per barrel in electronic deals before the official opening of the US market.
In London, Brent North Sea crude for December delivery gained 21 cents to 58.69 dollars per barrel in electronic trading.
As the market reacted ahead of the inventory data, said trade annalists.* In an earlier version of this note, we had it Wednesday, but the correct day it is Tuesday.
- Elio Ohep, editor@petroleumworld.com, 58 412 996 3730, Caracas.
Petroleumworld 11 108 06
Copyright© 2006 Petroleumworld. All Rights Reserved.
Your
feedback is important to us!
We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com
Any
question or suggestions, please write to:
editor@petroleumworld.com
Best
Viewed with IE
5.01+
Windows
NT 4.0, '95, '98 and ME +/ 800x600 pixels