ALGIERS/DUBAI, Oct 8: Opec is expected to make formal on Monday a deal to remove one million barrels a day of crude from oversupplied markets, an Opec source said, as ministers lined up to support the cut.
Iran, Opec ’s second biggest producer, and Algeria on Sunday publicly backed the reduction, Opec ’s first since April 2004. The plan was made public on Thursday by a senior Opec delegate.
“I think there is more or less consensus for 1 million bpd,” Opec President Edmund Daukoru told Reuters by telephone on Sunday. “The reference point is the (official) 28 million bpd ceiling.”
An Opec source said Daukoru had written to oil ministers in the last two days seeking their backing for the supply curbs.
“It is expected that there will be a decision on Monday to cut one million barrels per day from the official ceiling after consultations between the ministers,” the source told Reuters.
Algerian Energy and Mines Minister Chakib Khelil said there was consensus to lower output. This would have a positive impact on the market, he added.
Oil fell below $60 a barrel on Friday as investors doubted Opec ’s resolve to cut production.—Reuters
