Non-OPEC Producers Weigh In On Cuts
Non-OPEC oil producer Norway said on January 5th that it has no plans to cut production in conjunction with OPEC. A statement from the oil ministry said that: “There are no plans for cuts by Norway now. But we are following developments in the oil markets.”
A ministry official indicated that no formal request had been made for Norway to work with OPEC countries to curb output levels, although Oslo had participated with the cartel in production cuts in 1999 in an effort to boost lagging oil prices.
Oil Minister Olav Akselsen said that Norway would only move to cut production if prices fell to very low levels, such as in late 1998 when prices dipped below $10 a barrel.
OPEC Secretary General Ali Rodriguez said on January 4th that he expects non-OPEC Mexico to slash production after cartel members meet in Vienna on January 17th to determine the amount by which to reduce output.
Rodriguez said that: “Mexico has always been willing to cooperate with OPEC.”
Mexican Oil Minister Ernesto Martens is scheduled to meet with his Venezuelan counterpart Alvaro Silva in Caracas on January 7th to discuss oil markets and production levels ahead of the upcoming OPEC meeting.
© 2001 Mena Report (www.menareport.com)