OPEC will likely reduce oil production by a million barrels a day starting in January if crude prices continue to go down, Kuwait's oil minister said in an interview to come out on Monday. OPEC members will examine a decrease in production at their next meeting, January 17 in Vienna, if prices continue to sink at the current rate, Sheikh Saud Nasser Al-Sabah told the Kuwaiti newspaper Al-Rai Al-Am. “It is almost certain that an agreement on a reduction in production will be reached during the meeting,” He said. About one million barrels a day will be taken away if it is necessary, especially with the coming of spring and summer, which bring a reduction in consumption levels and the worldwide demand for oil, Sheikh Saud said.
Oil prices made a surprise slip of nearly $ 5 a barrel over the past week even though Iraq has not resumed exports of oil suspended December 1.
The price of Brent North Sea benchmark crude closed on Friday in London at $ 26.56 a barrel for January delivery.
Calling the upcoming OPEC meeting decisive, Sheikh Saud said oil-producing countries were determined to assure stability on the international oil markets and to maintain the prices at rightful levels that guarantee the interests of both producers and consumers.
Bureau Report