Ministers of the OPEC oil cartel are expected to announce output cuts in Cairo on Saturday totalling 1.5 million barrels a day for the first quarter of 2002 after securing promises from non-OPEC producers of a reduction of nearly half a million barrels. But analysts said the main problem would be ensuring that OPEC members respect the production quotas allotted to them, a question that would dominate the meeting.
Oil experts consider that the 11-member organisation of oil exporting countries regularly exceeds declared output limits by 20 to 30 per cent.
According to the Nicosia-based Middle East Economic Survey, OPEC output in November was an average of 23.78 million bpd, 597,000 more than the agreed ceiling. The publication added that since January OPEC had failed to meet its targetted cut of 3.5 million bpd by 480,000.
Algerian oil minister Chabib Khelil, the current chairman of OPEC, said on arrival in Cairo that members agreed it was right to reduce production in a bid to restore prices.
Bureau Report