VIENNA, Oct 19: Opec insisted on Friday it could cut oil output to prop up crude prices which have slumped to two-year lows since September 11, but said it will wait “a little” longer to monitor events.

Iranian Oil Minister Bijan Namdar Zangeneh said the 11-member cartel, which produces 40 per cent of the world’s crude, could convene a ministerial meeting ahead of its next scheduled gathering on November 14.

“We are consulting with each other for the best and appropriate measures to manage the market. Now, I cannot say which measures but every option is open”, he told reporters after a meeting of key ministers.

Asked specifically about the possibility of a production cut, he said: “Every option is open,” adding: “We don’t want to lose our revenues and we will do everything necessary to preserve our revenues.

“This is definitely an unusual situation. We have a lot of uncertainty in the market. We prefer to wait a little, after it we will take our measures.”

He was speaking after a meeting of Opec’s Market Monitoring Committee (MMC), which usually makes a recommendation to a full ministerial meeting about how the cartel should act.

He also reiterated Opec’s call for major non-Opec producers to cooperate to support prices. The cartel fears that if it cuts its production, countries like Russia, Norway and Mexico could simply boost their output to take up the slack, leaving prices low.

“Opec expects that non-Opec major producers can contribute with Opec to pass this special situation,” he said. “We are trying to have some discussion with... some heads of state of non Opec major producers.”

He added that too much oil will remain on the market next year. “In 2002 it seems that we will have oversupply.” But he added: “Everything depends on the global economic growth rate and the non-Opec supply.”

Opec faces a dilemma in how to respond to a market slump that has seen crude prices fall to below $20, well below the cartel’s $22-28 per barrel target band.

Opec’s next scheduled ministerial meeting is not until November 14, but there has been repeated speculation about either an earlier meeting or a production cut agreed by telephone before then.

Zangeneh refused to rule out an earlier meeting. “If it will be necessary we will do it,” he said.—AFP