OPEC ministers say may hold off on more oil cuts

AiYa

OPEC appeared willing on Wednesday to pull back from more oil output cuts, responding to consumer nation calls to hold off until winter has passed to guard against price spikes that would hurt the world economy.

OPEC, which produces over a third of the world's oil, will hold talks on Thursday to decide whether to curb supplies beyond the 1.2 million barrels per day ministers agreed in October.

"I don't think there will be any cut," the head of Libya's delegation, Shokri Ghanem, told Reuters.
Photo

The top news, photos, and videos of 2006.  Full Coverage

There is consensus in the group the market is oversupplied -- crude oil stocks in top consumer the United States are at a 13-year high -- but some ministers fear cutting output now, during peak demand, could drive prices further above $60.

OPEC's core Gulf members, including leading exporter Saudi Arabia, are among those who favor holding fire, a delegate said. They want to see OPEC focus on its existing agreement.

"No cut, compliance -- this is the view up until now from the Gulf members," the delegate told Reuters on Tuesday evening.

Members have delivered almost two thirds of the 1.2 million bpd reduction so far, according to Reuters estimates.

U.S. Energy Secretary Sam Bodman and the International Energy Agency have called on OPEC to wait until next year before deciding on further supply reductions.