Qatari minister urges 2 million b/d OPEC cut

Qatari Minister of Energy and Industry Abdullah Bin Hamad Al Attiyah has urged the Organization of Petroleum Exporting Countries to cut production at least 2 million b/d in order to stabilize crude prices in the second quarter.

According to a report Wednesday from the OPEC news agency, Al Attiyah said a cut of that magnitude would be need to offset an expected 2 million b/d drop in global oil demand in the second quarter.

He said, "OPEC should cut production by 2 million b/d or more to maintain prices within the range set by its price mechanism of $22-28/bbl." He added that a decision to reduce output should be taken "as soon as possible (because) delaying the move would lead to more pressure on prices."

Al Attiyah also urged continued cooperation between representatives from OPEC states and non-OPEC oil producing nations.

"It is premature to assume that non-OPEC producers will not cooperate in fresh production cuts," he said.

The 11-member organization increased its collective production four times last year to cool overheated crude prices. Since the sudden downturn in prices that started last month, several oil ministers of OPEC states have declared the need to cut production at the ministerial meeting on Jan. 17.