OPEC members are considering an output cut of between 1.0 million barrels a day and 1.5 million b/d a source close to OPEC told Dow Jones Newswires Thursday, confirming the same price spread Petroleumworld reported on Tuesday, by a source close to the OPEC Venezuela's delegation .
"Talk is now in the region of 1.0 million b/d to 1.5 million b/d," the source said, noting that a combination of lower crude oil prices and an imbalance in crude oil supply and demand has influenced OPEC members to increase the range of their planned output cuts, Dow Jones wrote.
On Wednesday oil crude in NYMEX fell to 11 week low, pressured by high inventories reported on the IAE monthly report an a fall in the U.S. stock markets.
In addition to that the OPEC basket price fell to $23.55/bbl Wednesday from $24.08/bbl Tuesday, below the group's target price of $25.00/bbl.
Earlier this week, talk had pointed to cuts between 0.5 million b/d and 1.0 million b/d to OPEC's current 25.2 million b/d output target, in order to stop the decline in prices.
The source, not himself from Saudi Arabia, told Dow Jones that the kingdom - OPEC's leading producer and most influential member - has indicated during bilateral discussions that it would support a cut of 1.0 million b/d. But other, more hawkish, producers such as Algeria were proposing a cut of 1.5 million b/d.
The source added that a decision on the size of the output cuts wouldn't be straightforward, and no clear consensus has been reached yet, wrote Dow Jones.
By Elio Ohep
© 2001 Mena Report (www.menareport.com)