Opec to announce the “big” cut

Opec member countries show strong solidarity in Oran-Algeria. They are also relying on Russia's support to break soaring oil prices, as demand is shrinking driven by economic recession and stock building in the USA.

• The presence of a deputy prime minister and 4 non opec countries was seen by Opec president Chakib Khelil as sign of solidarity. Algeria oil minister also speaks about an unprecedented consensus among the organization over a “severe” out put cut.
• Saudi Arabia, the world largest producer, seems to be in favour of a cut enough to hold a diving barrel which lost more than 70 percent of its price since July.
• Opec is decided to stop oil prices slump with the support of non Opec countries including Russia. This can be done only through reducing stocks specified Chakib Khelil in a press conference Monday in Oran.
• An “important” out put cut if implemented would bring stocks to47 days from 57 now said Khelil. The average in normal situation is 50 days of international consumption.
• International demand is also expected to shrink by 1.2 million barrels per day, according to analysts, in the second quarter of the year 2009 as winter ends.