Opec may cut output, says Libya

www.sabcnews.com

February 02, 2003, 08:45

Zlitni said the oil market was well supplied and global inventories were building up, setting the stage for a sharp decline in prices. "Supplies are sufficient and the build up of stocks will have a negative impact on prices, certainly," he said.

The Libyan oil minister said most cartel members were pumping at high rates in a bid to cool-off scorching oil prices which had blasted beyond $30 a barrel. "It seems everybody now is producing above the market requirements to make the market cool," he said.

Opec last month agreed to raise its supply limits by 1,5 million barrels per day (bpd) to 24,5 million bpd to cover the supply gap left by strike-bound member Venezuela.

Ali al-Naimi, an influential Saudi oil minister, said yesterday the kingdom would ensure that the producers group was pumping oil at 24,5 million bpd. - Reuters