Opec likely to cut production in Algeria, says Khelil

Opec member countries are more likely to announce an output cut in Oran, Algeria emergency meeting than in next Cairo gathering, the president of the organization said.

• “Opec members should cut production if they want to avoid more price decline,” Chakib Khelil, who is also Algeria’s Energy Minister, told reporters Sunday on the sidelines of Algeria Energy Week.
• OPEC plans to meet in a special session on November 29 in Cairo to figure out how to stop erosion in crude oil prices.
• The Organization of Petroleum Exporting Countries cut output by a daily 1.5 million barrels at a meeting in Vienna on October 24 in an attempt to stop the price slide.
• “By December, we will have complete information about the market situation to decide about an output cut,” Opec’s president said.
• Last week, Khelil said he preferred further oil cuts if the 1.5 million barrel reduction decided by Opec on October 24 didn’t bring prices back to a “reasonable” level.
• He also said Opec members at Algeria emergency meeting will assess the market move and agree on decision to stabilize prices between $70 and $90 a barrel.
• Oil prices fell below $55 a barrel on Thursday for the first time in 22 months.
• The International Energy Agency (IEA) expects global oil demand to grow by 120,000 barrels a day in 2008. In 2009, demand is expected to increase to 86.5million barrels a day.