Algeria's Energy and Mines Minister, Chakib Khelil, Wednesday urged the 11 member states of the Organization of Petroleum Exporting Countries not to wait until the next ministerial meeting Jan. 17 before cutting production to prop up falling oil prices.
According to a report from the OPEC's news agency, Khelil said OPEC's price band mechanism�designed to trigger adjustments to output when the oil price moves outside its desired $22-28/bbl range for more than 20 days (OGJ Online, Apr. 10, 2000)�should determine when a cut in output is made.
Khelil said a production cut could be triggered if prices remained below the set level for 10 trading days in a row. If this should happen before the upcoming meeting in Vienna, said Khelil, the meeting could provide an occasion to "analyze the situation and decide whether any further cuts were necessary."
Meanwhile, Indonesian Energy and Mineral Resource Minister Purnomo Yusgiantoro said OPEC ministers should cut overall output up to 1.5 billion b/d at the next ministerial meeting. Other ministers also have said OPEC should cut production to remove "excess" crude from markets and buttress slumping prices.
"Our position is clear in that we are going to propose at the meeting an oil production cut ranging between 1-1.5 million b/d," Yusgiantoro said at a press conference in Jakarta.
OPEC increased output four times last year to offset rising oil prices. The price of crude has fallen $10/bbl in recent weeks.
