RIYADH, Oct 16: Opec members are facing tough choices in efforts to boost slumping oil prices because triggering a price band mechanism has become difficult since the US terror attacks, a senior Gulf oil source said on Tuesday.

The choices are tough with regard to production cuts. Invoking the price band mechanism to keep prices between 22 and 28 dollars a barrel has also become difficult, the source told AFP on condition of anonymity.

The oil-producing cartel and non-Opec members are facing an unclear picture about the future prospects of the oil markets, he said.

Although the current situation in the oil markets requires a cut in production to boost prices, the world economic slowdown and the confusion resulting from the US-led military strikes on Afghanistan do not help in taking a decision.

Oil producers are keen to assist consumer countries in facing these unfavourable circumstances, the source added.

The oil cartel has set itself a minimum price of $22 per barrel, and has a mechanism in place under which an output cut of 500,000 barrels per day is meant to take place when the price drops below that level.

But this time Opec has not triggered the mechanism, saying it is waiting to see how the US-led military action develops. Such caution also comes against a background of tension between some Muslim nations and the West.

Opec’s next ministerial meeting is not scheduled until November 14.

Oil prices have slid below the 20-dollar-a-barrel mark since the September 11 attacks on the United States as fears of a US and maybe world recession grew.

Venezuelan President Hugo Chavez on Monday phoned King Fahd of Saudi Arabia and Iranian President Mohammad Khatami to discuss the situation in the market. Chavez is also coordinating with non-Opec members.

He is expected to visit Saudi Arabia and Iran next week.

But the Gulf source said it was unlikely for the price mechanism to achieve its goals under the absence of controls on production by non-OPEC members.

He said oil ministers of the Gulf Cooperation Council (GCC) are having “continuous consultations” to assess the situation in the world markets, as well as contacts with other Opec and non-Opec oil producers.

The GCC states are keen to adopt an oil policy that guarantees stability in the international market, and helps pushing demand up, the source said.—AFP