VIENNA, March 4: Opec on Tuesday looked set to ignore US President George W. Bush’s demand that the cartel increase oil output at its meeting here, with hardline members even calling for a cut in production.
Bush, whose nation is the world’s biggest energy consumer, said it would be a “mistake” by Opec not to hike production to help bring down record high oil prices when the organisation meets on Wednesday.But Opec ministers, as well as an influential committee that advises the 13-member oil-producing club, are in favour of keeping output on hold ahead of expected slackening demand in the northern hemisphere spring.
“I think it’s a mistake to have your biggest customer economy slow down, or your biggest customers’ economy slowing down, as a result of high energy prices,” Bush said on Tuesday as he met with Jordan’s King Abdullah II.
“My advice to Opec is understand the consequences of high energy prices,” added the US president.
Opec president, Algerian Oil Minister Chakib Khelil, said on Tuesday that he would prefer the Organisation of Petroleum Exporting Countries to cut its production, joining other price hawks in the group, Venezuela and Iran.
“I would prefer in this situation to lower production because demand globally is going to be lower,” Khelil told a press briefing ahead of Wednesday’s meeting in Vienna.
Opec fears that a hike in output would send oil prices tumbling, thus reducing the income of its 13 members, which include the world’s biggest crude producer Saudi Arabia, as well as Iran, Nigeria and Venezuela.
Bush’s plea might still influence Opec kingpin Saudi Arabia, which is a close US ally. The country has pushed through output increases in the past in the face of resistance from other Opec members.Saudi Oil Minister Ali al-Nuaimi has so far declined to speak to reporters.—AFP
