Al­ge­ria pro­poses 1.1 mil­lion bar­rel OPEC cut

The Myanmar Times - - International Business -

AL­GE­RIA has pro­posed that OPEC mem­bers cut 1.1 mil­lion bar­rels of daily oil pro­duc­tion to boost prices, Iran’s Shana news agency re­ported.

Mem­bers of the Or­gan­i­sa­tion of the Petroleum Ex­port­ing Coun­tries are due to meet to­mor­row in Vi­enna to dis­cuss cap­ping pro­duc­tion.

At a meet­ing in Al­giers in Septem­ber, the 14 mem­bers agreed to work to­wards a cut of be­tween 500,000 and 1 mil­lion bar­rels.

“The Al­ge­rian govern­ment has pro­posed a 1.1 mil­lion bar­rel per day cut in OPEC’s to­tal out­put,” En­ergy Min­is­ter Noured­dine Boutarfa said af­ter meet­ing with his Ira­nian coun­ter­part in Tehran.

“We are hope­ful that the next OPEC meet­ing will save the oil mar­ket of the cur­rent cri­sis,” he said.

Mr Boutarfa also called for nonOPEC mem­bers such as Rus­sia to cut their out­put by 600,000 bar­rels per day (bpd) – also slightly higher than ear­lier pro­pos­als – say­ing that falling oil prices were hurt­ing the global econ­omy and “must be stopped”.

He said the cuts could push prices up to US$60 per bar­rel by the end of the year.

A global sup­ply glut has sunk oil prices be­low $50 – more than half their level just two years ago – threat­en­ing the economies of ma­jor pro­duc­ers such as Saudi Ara­bia.

There have been grow­ing doubts among an­a­lysts on whether a deal could be fi­nalised.

Iran has re­fused to cut pro­duc­tion un­til it re­gains its pre-sanc­tions lev­els of out­put, although OPEC mem­bers agreed it could be ex­empted from any deal, along with Libya and Nige­ria.

Iran’s Oil Min­is­ter Bi­jan Zan­ganeh said he was op­ti­mistic an agree­ment would be reached in Vi­enna this week.

“The course of events and talks in­di­cates that OPEC can reach a sus­tain­able deal re­gard­ing its out­put and mar­ket man­age­ment,” he said, ac­cord­ing to Shana. –

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