|
OPEC defers oil cut
|
 |
November 14, 2001: 2:22 p.m. ET
Members defer new oil cut amid anger over non-OPEC rival Russia.
|
NEW YORK (CNN/Money) - OPEC nations agreed on Wednesday to defer action on new output curbs aimed at lifting oil prices amid frustration over a lack of cooperation from their main non-OPEC rival, Russia.
OPEC officials said they are prepared to remove from production 1.5 million barrels per day, which is 6 percent of total output, but would defer implementing new limits until January 1 pending more negotiations with Russia and other non-aligned oil producers.
Under heavy pressure from OPEC to help support oil prices, Russia said it would make no hasty moves on exports and output, and saw no reason for harsh demands from the cartel.
"If Russia does not cooperate with OPEC there will be no cuts now or in the future," a senior OPEC official told Reuters. "OPEC will not cut if Russia does not cut."
"They're playing with fire and it looks like they're going to get their fingers burned," said Gary Ross of New York consultancy PIRA Energy.
"It is a threat to Russia in particular, which has seen the biggest growth in non-OPEC output in the past two years," said Mehdi Varzi of investment bank Dresdner Kleinwort Wasserstein.
Russia, the world's second-largest oil exporter, said it would only offer to cut 30,000 bpd. And Norway said it also sees no need to cooperate for now. But Mexico was expected to contribute in the event of an OPEC decision to lower output.
Moscow has lifted crude exports sharply in recent years, topping three million barrels a day last month and leaving OPEC to prop up prices while losing market share.
OPEC Secretary-General Ali Rodriguez said his organization is willing to reduce production by 1.5 million bpd from the first of January with the simultaneous cooperation of non-OPEC producers of half a million bpd.
"We are trying to give them a generous offer and if I were in their shoes I would take this offer," said Qatari Oil Minister Abdullah al-Attiyah. "They would gain market stability and price."
Strenuous efforts by Saudi Oil Minister Ali al-Naimi, aimed at drumming up non-OPEC support in the run-up to the OPEC conference, fell flat.
OPEC's most influential minister, Naimi has been the driving force behind the push for a hefty 1.5 million bpd OPEC reduction twinned with 500,000 bpd from non-OPEC producers to combat slower demand and restore prices to a $25-a-barrel target.
He said of Russia: "They have the biggest capability. They are the key to price stability."
December contracts for North Sea Brent crude fell $1.78 to $19.03 in trading on the International Petroleum Exchange in London.
Light, sweet crude for December delivery was $1.77 lower at $19.90 in Wednesday afternoon trading on the New York Mercantile Exchange. 
- from staff and wire reports
|
|
|
|
|
|
|
