Iran: OPEC may need further cut if prices drop

OPEC may need to cut its oil output more but it remained too early to tell if a further reduction was needed, Iran’s OPEC governor Mohammad Ali Khatibi told Reuters on Wednesday.

“It is too soon to say whether OPEC’s November cut agreement has been successful. We should wait and see,” Khatibi said.

“But if crude prices continue to fall, then an additional OPEC cut may be needed.”

The producer group agreed to cut output from November 1 by 1.5 million barrels per day (bpd) after oil prices dived from a July record of $147 a barrel to less than half that. U.S. crude was trading around $68 a barrel on Wednesday.

Venezuela said on Tuesday it will propose another cut of 1 million bpd at the cartel’s next meeting, which is expected to be held in December.

Iran, the world’s fourth largest oil producer, has already started informing buyers that it is cutting back sales. Iran’s share of OPEC cut was 199,000 bpd.

“Iran and other OPEC members have been committed to OPEC’s November cut agreement,” Khatibi said.

“Creating a balance between oil supply and demand is OPEC’s priority.”

An oil pump decorated to look like a bird stands at rest Wednesday, ...
An oil pump decorated to look like a bird stands at rest Wednesday, Nov. 5, 2008, in oil fields near Awali, Bahrain. Oil prices slid below US$68 a barrel Wednesday on expectations a slowing global economy will cut crude demand, and even indications OPEC is enacting its decision to take a daily 1.5 million barrels from the market failed to support prices.(AP Photo/Hasan Jamali)

Read the rest:
http://news.yahoo.com/s/nm/20081105/bs_nm/us_iran_opec_1

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One Response to “Iran: OPEC may need further cut if prices drop”

  1. jasminefrompakistan Says:

    Is Obama planning to cover his ass during a retreat from Iraq by bombing Pakistan?
    Love to hear your opinions on that.

    http://jasminefrompakistan.wordpress.com/

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