OPEC may cut output, minister says

Dec. 3, 2006 at 8:30 AM
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TEHRAN, Dec. 3 (UPI) -- Declining global economic growth and other oil-related factors indicate a reduction in OPEC output may be necessary, Iran's OPEC governor said Sunday.

Hossein Kazempour Ardebili said reducing OPEC output has not negatively impacted the world market yet because supply exceeds current demand, the IRNA said.

A slowdown in the world economy, a drop in oil demand estimates as well as an increase in non-OPEC producers expected to continue into next year, plus the accumulation of oil reserves and products "all indicate that the oil market needs a new output cut," Ardebili said.

He said he expected a new reduction in OPEC output would be between 500,000 to 1 million barrels per day.

OPEC ministers are scheduled to meet in Nigeria Dec.14.

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