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  • Feb 3rd, 2005
  • Comments Off on Opec would normally wait until March for cuts: Qatar
Opec oil producers would under normal circumstances wait until their mid-March meeting before deciding on possible production cuts, Qatar's oil minister said on Wednesday. "We will wait normally to March. If there is before March a big change in the market we will consult among ourselves," Abdullah al-Attiyah told a news conference in the Norwegian capital. OPEC next meets on March 16 in Iran.

The group decided on Sunday to leave current production levels unchanged but said it could co-ordinate possible cuts by telephone before the March meeting if it saw stocks levels rising too fast and pressuring prices.

US crude prices have eased to around $47 a barrel, some $2.50 below two-month highs hit in January. OPEC appears ready to defend oil prices at a floor of about $40 a barrel for US crude, or $35 for a reference basket of cartel crudes.

Some members worry the mid-March meet comes a little late for comfort to adjust supply. Middle East exports take six weeks to reach Western markets. Opec President Sheikh Ahmad al-Fahd al-Sabah of Kuwait said that, should inventories build too quickly and prices fall, he could call a ministerial teleconference to take action.

Copyright Reuters, 2005


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