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OPEC ministers not in mood for further cuts

OPEC ministers not in mood for further cuts
AFP
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First Published: Wed, Feb 21 2007. 11 33 PM IST
Updated: Wed, Feb 21 2007. 11 33 PM IST
ABUJA: Nigeria is “satisfied” with the current price of oil and OPEC ministers are unlikely to reduce the cartel’s output at their meeting next month, Nigerian Energy Minister Edmund Daukoru said on 20 February.
“It (the price) looks reasonable. That is all I can say ... It could be better but more or less we are satisfied,” he told journalists“It is hovering around 59 dollars per barrel, getting fairly close to 60 dollar. We are reasonably satisfied, but it could be better.” He said it was unlikely that OPEC oil ministers, who will meet in Vienna on 15 March, would decide to cut oil production further.
The cartel decided in October and in December to cut production, targeting a reduction of 1.7 million barrels per day.“Some of my colleagues are not quite in the mood to do a further cut. 1.7 million barrels per day (bpd) is already a hefty cut. We would rather like to see how the market responds to the effectiveness of that cut,” Daukoru said.
“But when we meet, always there are surprises ... We will read the market mood. We are marketeers, we are in the market place, we are producing and we will also do our market gimmicks where necessary,” said Daukoru, who served as the president of the Organisation of Petroleum Exporting Countries last year.Nigeria, Africa’s largest oil producer, derives more than 95 % of its foreign exchange earnings from oil.
Iran’s oil minister predicted OPEC would not need to make a further cut in crude oil production at the cartel’s next meeting in March, as long as the price of crude remained stable.“If the oil price remains at current levels, there will probably be no need for a cut at the meeting in March,” Oil Minister Kazem Vaziri Hamaneh was quoted by the ISNA agency as saying on the sidelines of an oil conference.
“At the moment prices are going up, so the OPEC price basket is above 50 dollars” a barrel, he commented.“But if the upward trend of prices were to change, some other options would definitely be examined,” said Vaziri Hamaneh, whose country is OPEC’s second largest producer.
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First Published: Wed, Feb 21 2007. 11 33 PM IST