November 15, 2001	Thursday	Shaba’an 28, 1422

VIENNA, Nov 14: Opec oil cartel agreed on Wednesday to slash output by at least one million barrels per day (bpd) to boost sagging crude prices, despite failing to win immediate support from key rival Russia.

Amid an apparent attempt at 11th-hour brinkmanship with Moscow, the cartel’s ministers agreed the reduction but said they still hoped key non-Opec countries would yet offer more help to bolster crude prices.

Organization of Petroleum Exporting Countries (Opec) President Chakib Khelil said there was “consensus on at least one million” barrels per day (bpd) to be cut from the 11-member cartel’s total output.

“There will be a cut,” Iranian Oil Minister Bijan Namdar Zangeneh said after an informal meeting. The Iranian minister had previously urged no cut if non-Opec states failed to take action.

Opec, which produces 40 per cent of the world’s crude, has been widely expected to cut its output by at least one million bpd, its fourth reduction this year.

Meanwhile in Moscow the head of oil giant Lukoil said that Russian oil majors could freeze their production next year to help stabilize the world market if necessary.

Under current investment plans, crude output in Russia will increase by 300,000 to 500,000 bpd next year, Leonid Fedun said.

Nigerian delegate Rilwanu Lukman, who takes up the Opec presidency from January 1, said Opec was maintaining pressure on non-Opec producers. “We are asking them to offer more, a little bit more,” he said.

Earlier in the day officials said Opec had to get tough, warning that they could decide not to cut production, after Moscow offered nothing but a token reduction in its own vast production.

Saudi Arabian Oil Minister Ali al-Nuaimi, the cartel’s kingpin, singled out Russia for criticism, saying he was disappointed at its token 30,000 barrels a day cut announced on Monday.

“Thirty thousand barrels out of seven million, that disappoints anybody. The Russians know that,” he told journalists, referring to Russia’s total oil production capacity. “Their cooperation is very very important.” Kuwaiti Oil Minister Adel al-Sebeih said bluntly that he “would not support a cut,” if Russia did not cut by a proportionate amount.

Opec has already cut output by more than 13 per cent this year. But Opec members fear a cutback might not rescue prices but would be usurped by non-Opec countries eager to pump their volumes to boost market share.

Opec is being forced to act because crude prices have tumbled around 25 per cent since the September 11 terrorist attacks on the US.—Agencies