OPEC to Press Non-OPEC Countries

Sun June 8, 2003 08:31 AM ET By Richard Mably

DOHA, Qatar (<a href=asia.reuters.com>Reuters) - OPEC producers at a meeting on Wednesday are set to pressure independent oil exporters to contribute to the cartel's next supply cut to allow for the return of Iraqi oil.

OPEC President Abdullah al-Attiyah made clear Sunday that major non-aligned producers would once again be called upon to help the Organization of the Petroleum Exporting Countries (OPEC) defend its $25 a barrel target price.

"Yes. We require their support. I feel we have their support," Attiyah, also oil minister of Qatar, told reporters of OPEC's three leading rivals -- Mexico, Norway and Russia.

OPEC powers Saudi Arabia and Venezuela already began lobbying Friday when they met with non-OPEC Mexico in Madrid to discuss Baghdad's market re-emergence.

Iraq, recovering from the U.S.-led war, will resume oil exports in the middle of June, but shipments are expected to stay well below pre-war levels for several months.

Attiyah declined to comment on OPEC's likely decision on Wednesday, but with prices near the top end of OPEC's $22-$28 band some ministers have said there is no immediate need to reduce the 25.4 million barrels per day (bpd) output limit.

"We won't just cut for the sake of cutting," Attiyah said.

And with U.S. crude oil at over $30 a barrel, alarm bells are ringing in the world's biggest consumer nation as it heads into summer when gasoline demand rises and often pushes prices higher.

"I don't want to see my consumers angry, I believe the customer is always right," said the OPEC chief. "But we have to be careful about the balance between demand and supply."

OPEC has not needed to reduce production limits since late 2001, when it slashed supplies on condition that rival exporters Mexico, Norway and Russia contribute. The three resisted but joined the plan when prices started falling.

The three will be represented in Doha -- for the first time at an extraordinary meeting.

But the subject of oil market debate, Iraq, will not be present, an issue which has rankled Iraqi officials.

Attiyah acknowledged there has been no contact between OPEC headquarters and Baghdad since the U.S. occupation, but urged Iraq to get in touch.

"I did not receive any request from Iraq, but personally I'd be happy to talk to them," he said, adding he hoped Iraq would make OPEC's next scheduled meeting in September. "If they want to call, I would be very happy to receive them."