Members of the Organization of the Petroleum Exporting Countries (OPEC)
were divided over oil output cut yesterday, one day ahead of an OPEC
"extraordinary meeting," to be held in Vienna to address oil price today.
Iran, Libya and Venezuela urged the 13-member OPEC to take quick action to
cut the output so as to avoid a steep slide in oil prices.
Speaking to the press, Iranian Oil Minister Gholam Hossein Nozari said a cut
of "two million (barrels per day) will stabilize" the market.
Libya made the similar call for a reduction of two million barrels per day,
while Venezuela said there should be a cut of at least one million barrels.
Libya's Oil Minister Shukri Ghanem said "a huge cut" of "two million barrels"
was required to create a balance between supply and demand.
Venezuelan Oil Minister Rafael D. Ramirez said the OPEC members "have to take
some action now, now," adding that Friday's meeting will reach "consensus to
take a very, very, very fast action."
The price of New York oil dived on Thursday to a new 16-month low in choppy
trade.
New York's main contract, light sweet crude for December delivery, sank as
low as 65.90 U.S. dollars per barrel, which was last seen on June 13, 2007.
Just three months ago, the oil price hit record high of 147.27 U.S. dollars
per barrel on July 11, 2008.
However, Saudi Oil Minister Ali al-Nuaimi rejected the call of output cut on
Thursday when he arrived in Vienna for the one-day meeting.
"Who said anything about a cut?" Nuaimi questioned the reporters.
Speaking to the press on Thursday, OPEC's president Chekib Khelil, who is
also Energy Minister of Algeria, said "we are going to reduce" oil output.
However, Khelil said he did not know how big a cut would be made.
OPEC produces 40 percent of the world's oil and its official output quota
stands at 28.8 million barrels per day.
