Higher Venezuelan Output May Lead to OPEC Production Cut

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Tuesday, Febuary 4, 2003 03:16 AM ET  Printer-friendly version   DOHA, Qatar -- Organization of Petroleum Exporting Countries President Adbullah bin Hamad al-Attiyah said Tuesday that Venezuela's increasing oil production is a sign that may prompt OPEC to consider a production cut when it meets March 11.

Asked about the possibility of a reduction in the group's overall ceiling in the coming months, given Venezuela's higher production, he said "why not?"

Mr. Al-Attiyah noted that world oil demand is expected to slow by around two million barrels a day in the second quarter, and this will combine with increasing Venezuelan output, so OPEC will try to strike a balance between supply and demand.

Venezuela's crude output rose to 1.22 million barrels a day as of Monday, from around 1.1 million barrels a day over the weekend, dissident staff of Venezuela's state-owned oil monopoly Petroleos de Venezuela said in a daily report.

Mr. Al-Attiyah was speaking to reporters ahead of a natural-gas conference.

-Abdulla Fardan; Dow Jones Newswires; 00973-965-865-6; Abdulla.Fardan@ Dowjones.com