US Energy Secretary: Richarson to travel to Saudi Arabia and Kuwait shortly
US Energy Secretary Bill Richardson said Wednesday to reporters that he will travel to the Middle East shortly to meet with Saudi oil minister Ali Naimi , Kuwaiti oil minister Saud al-Sabah and other OPEC members, before OPEC's Jan 17 meeting, reported Energy News Live
Richarson hopes to persuade OPEC's members not to make sharp production cuts at next week's meeting.
"My message is going to be 'do not make precipitous cuts," Richardson said. "We hope there is moderation in production cuts'' at OPEC's meeting. Richardson said world oil stocks are still rebuilding and large production cuts should not be made at this time.
However, according to the statements from various OPEC ministers, the organization is prepare to cut at least 1.5 millions. b/d.
Saudi Arabia the most moderate of the cartel members said on Wednesday that they will inform their customers this week of an average reduction in crude supply for February amounting to 500,000 barrels daily, just over five percent.
That will correspond with a Saudi Arabia quota for an OPEC's cut of 1.5 millions b/d.
OPEC ministers are due meet in Vienna next week to consider their next move following the recent slump in crude prices.
A production cutback of between 1.5 and 2 million barrels a day is considered the most likely outcome by market watchers due to position of the diferent OPEC members and the new the economic situation in the US.
By Elio Ohep
© 2001 Mena Report (www.menareport.com)