OPEC president: Venezuela higher output may prompt March cut

www.vheadline.com Posted: Tuesday, February 04, 2003 - 5:56:43 AM By: PETROLEUMWORLD

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?"

Al-Attiyah noted that world oil demand is expected to slow by around 2 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 b/d as of Monday, from around 1.1 million b/d over the weekend, dissident staff of Venezuela's state-owned oil monopoly Petroleos de Venezuela said in a daily report.

Al-Attiyah was speaking to reporters ahead of a natural gas conference due to open shortly.

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