No need for further OPEC production cuts
There is no need for further cuts in oil production, Saudi Arabia oil minister Ali al-Nuaimi told reporters Monday after meeting his Mexican and Norwegian counterparts, Ernesto Martens and Olav Akselsen.
The market was currently selling at a "reasonable price", he said, recalling that OPEC had set a target price of about $25 a barrel.
In London on Monday evening, the benchmark Brent North Sea crude for March delivery was selling for $28.80 a barrel, down from $29.10 at the previous close.
The Organization of Petroleum Exporting Countries decided in mid-January to cut production by 1.5 million barrels a day, effective from February 1 to steady the market.
"There is no need for additional steps by any actor," al-Nuaimi said Monday. OPEC member Saudi Arabia is the main exporter of oil. Norway and Mexico, although oil-producing countries, are not members of OPEC.
Mexico's minister, Ernesto Martens. told reporters: "The supply of oil in the world today is balanced with the demand." And for Norway, Olav Akselsen said: "For Norway, the goal is not to get a price as high as possible."
Earlier Monday, Indonesian Mines and Energy Minister Purnomo Yusgiantoro was quoted as saying Jakarta would back further cuts in crude oil production at the next OPEC meeting because of an anticipated decline in consumption.
"With lower demand in the second quarter, we believe the price will drop and Indonesia will support OPEC cuts to maintain prices at our budget level," he told the Indonesian Observer."Usually demand is very bad in the second quarter," he added.—AFP.
©--Agence France Presse 2001.
© 2001 Mena Report (www.menareport.com)