OPEC moves to production cut in Algeria meeting

The Organization of the Petroleum Exporting Countries (OPEC) is likely to decide an important output cut when it holds an extraordinary meeting on December 17 in Oran (west of Algeria).

• OPEC head, Chakib Khelil said oil markets should brace for a surprise decision on reduction suggesting that output cuts could be deeper than expected.
• “There is an OPEC consensus on the reduction. But I can not tell you (more),” he told reporters Saturday.
• The expected output cuts are meant to prevent further falls in oil prices which fell to $40 from a record of nearly $150 a barrel.
• Earlier in November, OPEC decided to cut production by 1.5 million barrels a day at an emergency meeting held in Vienna.
• Iran, one of the 13 OPEC members Sunday said it will propose output cut by between 1.5 million and 2 million barrels per day.
• Khelil, who is also Algeria’s Energy Minister, said Russia will be represented by Deputy Prime Minister Igor Sechin and Energy Minister Sergei Shmatko at OPEC meeting. The European country is not a member of OPEC but it is a major world oil producer.