VIENNA, Oct 9: The basket oil price used by Opec to set its output slipped below $20 again Monday, well below its $22 target floor, as the cartel mulled how to react to slumping prices, officials said Tuesday.

The latest Opec basket price, based on an average of seven world crudes, stood at $19.75, compared to $20.09 Friday, according to Opec secretariat calculations.

The Organization of Petroleum Exporting Countries (Opec), which produces 40 per cent of the world’s crude, is struggling to react to slumping oil prices since the September 11, attacks on New York and Washington.

Under normal circumstances, the 11-member cartel would cut its production levels in response to falling prices, but this is seen as politically difficult amid the US-led war and as western economies head towards recession.

Opec ministers decided at a September 26 meeting to leave their production quotas unchanged.

Under a price-band mechanism the 10-day period below the $22-28 target range would trigger an automatic production cut of 500,000 barrels per day.

The 10th trading day was reached last Friday, but OPEC said Monday it would not immediate trigger the mechanism, while an official said the cartel would wait for at least 48 hours before taking any decision.

In London, oil prices drifted higher on Tuesday as reaction to the US-led military action in Afghanistan remained muted and dealers focused instead on the latest figures for US crude inventories.

The price of a barrel of Brent North Sea crude for November delivery rose 17 cents to $21.74 in early deals here. In New York, the November light sweet crude contract ended up six cents on Monday at $22.45.

The oil market had already discounted military action against the Taliban and terrorist camps in Afghanistan, and has barely budged since the onslaught began on Sunday night.—AFP