Sec. General Lukman: "We will cut production if necessary"
Opec president and Venezuelan Energy Minister Ali Rodriguez Monday pointed out that there will not be any reduction of OPEC production because of possible capacity constraints. "Nobody will reduce quotas," Rodriguez told Bridge News.
OPEC Secretary General Rilwanu Lukman said here Saturday that the OPEC policy is based on stabilizing oil prices, the official IRNA agency reported Monday.
Lukman said following the increase in world oil prices, OPEC had decided to raise its output on three different occasions and thanks to measures taken by OPEC, a balance had been restored to the oil market, IRNA said.
On Thursday, Rodriguez said in Caracas that officials at the OPEC Secretariat in Vienna were looking at means to re-allocate oil production quotas between member states in case some nations are not be able to produce their new quotas.
OPEC added 500,000 bpd of oil production under its price band system last week, amid skepticism that members other than Saudi Arabia would be able to raise their output of oil.
The secretary general of the Organization of Petroleum Exporting Countries Rilwanu Lukman said Saturday that the group won't hesitate to cut production by as much as necessary if crude oil prices drop below the $22 per barrel.
"If the prices fall below $22 per barrel next year, there would be no magic involved and we will cut production," Lukman said in a press conference held in the sideline of an energy conference opened in Tehran earlier in the day.
© 2000 Mena Report (www.menareport.com)