Open

Coming up

Don't miss

Replay


LATEST SHOWS

WEB NEWS

Online movement demands peace in Gaza

Read more

BUSINESS DAILY

Apple aims to satisfy China's hunger for smartphones

Read more

DEBATE

MH17: Punishing Putin? (part two)

Read more

DEBATE

MH17: Punishing Putin?

Read more

MEDIAWATCH

Competing narratives in Malaysia Airlines disaster coverage

Read more

AFRICA NEWS

Kenya : Police arrest 8 over Mombasa rampage

Read more

FOCUS

Overfishing and the global appetite for bluefin tuna: can Tokyo turn the tide?

Read more

MEDIAWATCH

Too many graphic images from Gaza ?

Read more

FASHION

Who's next in Paris, an event with international ready-to-wear and fashion accessories collections

Read more

  • Netherlands to honour MH17 victims in national day of mourning

    Read more

  • Defying UK, France to proceed with warships sale to Russia

    Read more

  • Israel hits Gaza targets despite diplomatic push for ceasefire

    Read more

  • US courts issue conflicting reports on Obamacare

    Read more

  • Video: Lebanon fears fallout from regional turmoil

    Read more

  • Widodo wins Indonesian presidential election

    Read more

  • Flight MH17 shot down ‘by mistake', US intelligence indicates

    Read more

  • US, European airlines suspend flights to Tel Aviv

    Read more

  • Australian veteran Rogers claims 16th stage of Tour de France

    Read more

  • France gives go-ahead to pro-Palestinian Paris rally

    Read more

  • French Jews mourn French-Israeli soldier killed in Gaza

    Read more

  • PSG punished by UEFA for abuse of disabled Chelsea fans

    Read more

  • Colombia's Rodriguez signs '€80m' contract with Real Madrid

    Read more

  • Children killed in minibus crash in eastern France

    Read more

  • A call for harmony in riot-hit ‘Little Jerusalem’ Paris suburb

    Read more

Business

Cartel looks set to reduce output

Latest update : 2009-03-15

OPEC members, meeting in Austria, appear set this weekend to trim output to energise weak oil prices. The International Energy Agency (IEA) - which represents oil consumers - has warned a further output would accelerate the global economic crisis.

AFP - OPEC meets here Sunday for a pivotal production meeting that could cut crude output to defend slumping oil prices which have collapsed in the face of a fierce global economic downturn.
  
The spreading worldwide recession has ravaged energy demand and dragged oil prices far below the record highs above 147 dollars per barrel that were forged last July. In turn, that has slashed OPEC's precious revenues.
  
"The world economy is not as healthy as it should (be), so we should expect demand worldwide to be down," said Oil Minister Ali Ibrahim al-Nuaimi of influential OPEC kingpin Saudi Arabia on Saturday.
  
The Organization of Petroleum Exporting Countries, which pumps 40 percent of the world's crude supplies, will hold a regular production meeting in the Austrian capital where the cartel is headquartered.
  
Algeria has called explicitly for OPEC to slash output to energise weak oil prices, which have been slammed by weak demand arising from the global economic downturn.
  
OPEC was also widely tipped to increase the pressure on its members to comply with last year's steep production cuts.
  
The cartel has already slashed its output three times since September as it sought to breathe new life into battered oil prices.
  
Asked by reporters about whether he wanted OPEC to cut production, Algerian energy minister and former OPEC president Chakib Khelil replied: "Yes we would like to."
  
Questioned about whether he would favour an output cut or full compliance among OPEC nations with previous cuts agreed last year, he responded: "Both."
  
Nuaimi also said that there was an 80-percent compliance level with the cuts agreed late last year to reduce output by a total of 4.2 million barrels per day.
  
That means that OPEC has yet to remove 20 percent of the cuts -- or 800,000 barrels per day of production -- from the market. Venezuela had called Friday for "100 percent" compliance.
  
When asked on Saturday if there will be another cut, Nuaimi replied: "We will tell you tomorrow."
  
Saudi Arabia has previously stated that it regards 75 dollars per barrel as a "fair price" for crude -- but oil prices remain far below this level.
  
OPEC's official daily output quota currently stands at 24.84 million barrels after the last gathering in December in Oran, Algeria.
  
Iraq also pointed Saturday towards a production cut -- but the country is not part of OPEC's quota system owing to persistent unrest.

Date created : 2009-03-15

COMMENT(S)