The Organization of Petroleum
Exporting Countries is leaning toward cutting production during a
semiannual ministers' meeting next month, the cartel's secretary
general said on Monday.
OPEC Secretary General Ali Rodriguez said global oil demand
could drop by 2 million barrels a day when warm weather sets in in
the second quarter. He added that the cut would not exceed 1
million barrels a day.
"Yes, the inclination ... was that we need to cut oil, because
during the second quarter there's always a significant decline in
oil demand," Rodriguez said during a radio interview from London.
Rodriguez, who is Venezuela's former oil minister, made his
statements one day after President Hugo Chavez met with Saudi
Arabian King Fahd and Crown Prince Abdullah during a three-day
visit to the OPEC heavyweight. A Venezuelan diplomat said the two
OPEC leaders discussed oil market conditions and prices. Chavez
will visit OPEC member Qatar for one day on Wednesday.
Under Chavez, Venezuela has become one of OPEC's most hawkish
members. Chavez has recently rallied for prices to remain between
$25 and $28 — the higher end of OPEC's price band.
OPEC sliced output by 1.5 million barrels a day last month in
anticipation of a seasonal fall in demand in the second quarter.
Rodriguez assured that OPEC would consider new tensions in the
Middle East and distribution problems in the United States before
deciding whether to cut.
He added that OPEC is committed to keeping prices within its
band mechanism — $22 to $28 a barrel.
