Opec cutback decision at March meet

www.gulf-news.com Abu Dhabi |By Stanley Carvalho | 03-02-2003

Opec will take a final decision at its March 11 meeting on whether to cut production, said Abdullah bin Hamad Al Attiyah, president, Opec.

Opec does not plan to have any extraordinary meeting until March 11 but if an attack on Iraq takes place it might convene an emergency meeting, Attiyah said on the sidelines of the Environment and Energy Exhibition and Conference 2003 which began yesterday.

Al Attiyah clarified that there will be no extraordinary meeting of Opec in the near future and the next meeting is only in March.

"Right now we are only a few ministers in Abu Dhabi and we are holding only bilateral talks. Only at Opec's March 11 meeting we will discuss all options and how to react to the market situation then. For sure, there can be any surprise in the market.

"I hope not to see war but Opec as an institutional organisation will react if there is shortage of supply by balancing demand with supply. Opec always as traditionally can meet any time to discuss the market."

Obeid bin Saif Al Nasiri, UAE Minister of Petroleum and Mineral Resources, expressed concern about falling demand in the second quarter leading to a drop in prices. "If we see any sign of a fall in oil prices, we will correct the situation," he said, hinting that Opec may even cut production.

Saudi Arabia's oil minister Ali Al Naimi said the March meeting of Opec will focus on the international inventory level which is currently on a low level especially in the U.S. "Venezuela's return may mean extra supplies to the U.S and inventories can be rebuilt."