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OPEC ministers say agreement reached on output cut
( 2001-12-28 12:17 ) (7 )

The Organization of Petroleum Exporting Countries has reached firm agreement to slash production by 1.5 million barrels a day, two OPEC ministers said here Thursday.

"It's a done deal," said Alvaro Silva Calderon of Venezuela, speaking one day ahead of a key OPEC ministerial meeting in the Egyptian capital.

"Yes, for sure, it is for six months," added Abdullah bin Hamad al-Attiya of Qatar when asked if the cut would be for half a year from January 1.

Asked if there were now a consensus on the 1.5 million-barrrel-a-day output reduction, he said: "For sure there is a consensus."

While Attiya disclosed that the reduction would be in place for six months starting January 1, Calderon would not specify when the cuts would begin or for how long they would last.

Several OPEC ministers in addition to Attiya have spoken of a January 1 target date, although one OPEC official has suggested cuts might not begin until February.

Moreover, some have suggested the reductions should be be applied only during the first quarter of 2002.

Ali Rodriguez, secretary general of the Organization of Petroleum Exporting Countries, said earlier that "if a decision is going to be made, it will be applied as of the first of January."

The timing of the cut is expected to dominate discussion here on Friday, an OPEC source said, adding that he and his colleagues "will push to implement it during the first six months of the year."

He described the next regularly scheduled OPEC meeting, set for March 12 in Vienna, "as one of the most important in OPEC's history," during which there will be "an evaluation of the commitments of non-OPEC" countries.

But analysts warned that the main problem would be ensuring that OPEC members respect the production quotas allotted to them, a question that would also dominate Friday's meeting.

Oil experts consider that the 11-member cartel regularly exceeds declared output limits by 20 to 30 percent.