Qatar minister says strong movement for Opec output cut

Kedar Sharma

DOHA: Qatari oil minister Abdullah al-Attiyah said on Monday there was a “strong movement” within the Organisation of Petroleum Exporting Countries (Opec) to cut output to shore up sagging oil prices. “We believe there is a strong movement (within Opec) to cut production to stabilise prices,” Mr Attiyah said. “We will support it very strongly.”

Oil prices have fallen about 25 per cent since the September attacks on the United States amid an increasingly grim outlook for petroleum consumption. That bearish prognosis has helped push the group’s basket of seven crudes below its $22-$28 range for 15 days running.

A Gulf source said last week the Opec was discussing a supply reduction of between 700,000 barrels per day (bpd) to one million bpd. But the Qatari oil minister declined to talk volume. “Now we are still in consultations between ourselves — Opec and non-Opec — so I cannot give you any figure,” Mr Attiyah said.

Some Opec members fear losing market share to rival non-Opec producers whose output has been on the rise following two years of robust prices. Mr Attiyah said a potential supply curb, which would be the group’s fourth this year, could be agreed at any moment. “A cut (by Opec) is possible any time,” he said. “We are in close consultation. It may happen by phone or by meeting.”

Opec oil ministers are due to gather on November 14 in Vienna to discuss output policy, having agreed to let the group’s 23.2 million bpd output ceiling unchanged when it met just over two weeks ago. Opec President Chakib Khelil has ruled out, for now, the possiblity of an emergency meeting before the November session. The Qatari oil minister said he was uncomfortable with an Opec basket price below the group’s $22-$28 range. “I am not comfortable with the price if it is below $22,” Mr Attiyah said. “It is not a reasonable price for consumers as well as producers.”

— Reuters