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OPEC ``Conditional Cut of 1.5 Million Barrels``

Posted November. 16, 2001 09:10,   


OPEC expressed that it would reduce its daily production target for oil by 1.5 million barrels, but only if non-OPEC producers share the burden.

OPEC secretary-general Ali Rodriguez told a news conference after the OPEC oil ministers` meeting held in Vienna, Austria, on Wednesday, ``This agreement is based on the condition that non-OPEC oil producing countries are to decrease output by 500,000 barrels per day.``

Non-OPEC countries have promised to decrease 175,000 barrels per day. Russia proposed to decrease 30,000 barrels, and Mexico and Oman also decided to reduce their output. However, Norway said that it would decrease output only when `the national interest is seriously threatened`.

Qatar`s oil minister, Abdullah Bin Hamad Al Attiyah, warned of the possibility of a `second oil price war` saying that ``if non-OPEC countries do not cooperate, everybody will lose.``

Meanwhile, having been affected by the conditional agreement on the cut, oil prices went down.

December contracts for North Sea Brent crude marked 19.03 dollar, down 1.78 dollar, and Western Texas oil marked 19.9 dollar, down 1.77 dollar. On the contrary, OPEC oil marked 19.23 dollar, up 12 cents.

The next OPEC ministerial meeting will be held next March 12th.

Jung-Ahn Kim credo@donga.com