Opec leaning towards output cut despite US opposition
AFP, Vienna
Opec ministers meeting in Vienna Wednesday looked set to maintain a cut in their daily oil production of one million barrels, despite US calls for a delay to help rein in high energy prices. Most of the 11 oil ministers of the Organization of Petroleum Exporting Countries said ahead of a formal meeting there appeared to be an agreement to proceed with a reduction from April 1, agreed last month in Algiers. "We have our previous decision taken in Algiers," Venezuelan Oil Minister Rafael Ramirez told reporters after a breakfast meeting with fellow Opec ministers at a hotel in the Austrian capital. Algerian Oil Minister Chakib Khelil added: "We expect to maintain the cut decided in Algiers." However, at least one Opec member, Kuwait, still favoured a delay, its Energy Minister Sheikh Ahmed Fahd al-Sabah said. Obaid Al-Nasseri of the United Arab Emirates said all options would be discussed. In any case, analysts doubt Opec members will actually reduce their exports significantly while prices remain high, even if they say they will. The 10 members within the quota system, which excludes Iraq, produced 1.3 million barrels per day above their official target in February, according to the International Energy Agency in Paris. Ministers were expected to hold more talks at a Vienna hotel before a plenary session at 2:00 p.m. (1200 GMT). Oil prices rose on world markets in expectation of a cut in Opec production. The price of benchmark Brent North Sea crude oil for May delivery climbed 16 cents to 32.61 dollars in early London trading. On Tuesday, New York's benchmark light sweet crude contract for delivery in May had surged 80 cents to 36.25 dollars a barrel, far above Opec's official target price band of 22-28 dollars per barrel. Opec is worried that demand for crude oil will fall with the arrival of spring in the northern hemisphere and that it must act now to prevent a price collapse. They face opposition from the United States, where Democratic presidential contender Senator John Kerry called on the US government to put pressure on Opec to increase production to counter record high gasoline prices.
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