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.
The OPEC cut in production maybe between 1.5 to 2 million bpd, according oil ministers that have urge that OPEC cut at least two million bpd output.
Minister Abdullah bin Hamad al-Attiya has urged OPEC to cut production by at least two million bpd when it meets in Vienna on January 17. Reported a news agency
Quoted by the official QNA agency, Attiya said a cut "of at least two million bpd" was needed in time for the arrival of spring.
"Demand for oil traditionally falls every year from April 1. It is certain that the cut this year will reach two million bpd," Attiya said.
Iran predicts 1.5 million barrel a day cut just for starters Iran says the OPEC oil producers' cartel will decide to cut production by 1.5 million barrels a day (bpd) at its full ministerial meeting on January 17 in Vienna, the Aftab-e Yazd newspaper has reported. "OPEC is determined to cut production,'' it quoted Iran's OPEC governor Hossein Kazempour as saying.
"OPEC...will decrease production at least by 1.5 million barrels a day.'' AFP reported .
Also a report made public today from Morgan Stanley shows that the US economy is entering in a down curve. In a message to clients today, Morgan Stanley Chief Economist Stephen Roach and Chief U.S. Economist Richard Berner said U.S. gross domestic product will contract by an annualized 1.25 percent in the first half of this year.
The U.S. is now in a recession and there is a 45 percent chance that deterioration in the world's largest economy will lead to a global recession in 2001.
Monday in New York Crude oil futures fell 2% Monday despite comments indicating OPEC may agree next week to cut production by more than 1.5 million barrels per day.
Gasoline ended higher, boosted by news that production unit at a key Venezuela refinery was shut unexpectedly, and is now at a premium to heating oil for the first time since October, reported Bridge News.
Dow Jones reported that Brent blend futures fell sharply Monday at London's International Petroleum Exchange. Traders attributed the weakness to technical factors as well as bearish market sentiment in the face of falling crude futures at the New York Mercantile Exchange.
Nearby IPE February Brent futures lost 75 cents to close at $24.43 a barrel, while March Brent closed at $24.09 a barrel, down 86 cents on the day.
By Elio Ohep
© 2001 Mena Report (www.menareport.com )