Saudi Arabia backing new OPEC output cut
OPEC kingpin Saudi Arabia is in favour of fresh output cuts during the next OPEC meeting in a month's time, the Wall Street Journal reported on Tuesday.
The newspaper quoted sources at the Organization of Petroleum Exporting Countries (OPEC) who were "familiar with Saudi thinking on oil matters" as saying that Riyadh felt that further cutbacks were necessary to balance supply and demand.
OPEC cut output by 1.5 million barrels a day -- five percent of its total production -- from February 1 in order to underpin prices.
But consuming countries have urged restraint, fearing that further cutbacks will result in a new price spiral.—AFP.
©--Agence France Presse 2001.
© 2001 Mena Report (www.menareport.com)