OPEC Secretary General Ali Rodriguez said on March 21st that the cartel could cut production again in June if needed to maintain oil prices in the group’s desired range. Rodriguez said that: “If it is necessary to cut again, we will cut again.”
The former Venezuelan oil minister indicated that OPEC could consider further output reductions at a special meeting scheduled for June 5th and 6th, although he declined to say what volume could be cut following the group’s decision on March 17th to slash production by 1 million b/d beginning April 1st.
OPEC ministers had said that non-OPEC producers Mexico, Angola, Russia and Oman could contribute to the cuts, although it was thought unlikely that supply levels would be much changed.
Rodriguez also said that he expected “100 percent compliance” with OPEC’s second production cut this year, adding that compliance with the first cut announced in January had been more than 85 percent.
The OPEC secretary general indicated that the cartel was studying the U.S. and Japanese economies for signs of a slowdown and the possible effects on world oil prices.
He said that OPEC’s latest cut was a “preventive decision” and that further production changes could be considered. “All this depends on the situation in the world economy,” Rodriguez said.
© 2001 Mena Report (www.menareport.com)