OPEC Urges Russia, Norway to Stick to Oil Curbs

June 8, 2002 - 0:0
VIENNA OPEC Chief Ali Rodriguez called on Thursday on non-OPEC rivals such as Russia and Norway to maintain reduced export levels which have helped shore up oil prices after September 11.

Rodriguez also reiterated that the 11-member cartel was likely to keep its own production ceilings unchanged at a ministerial meeting in Vienna on June 26.

"Prices are well within the OPEC range of $22-$28 dollars a barrel," the OPEC secretary general told the cartel's OPECNA news agency, while voicing concerns about the global economic situation in the second quarter.

"These indications point to the need for OPEC to exercise caution, which will likely result in U.S. keeping our present production ceiling unchanged at our June meeting," he said.

Rival producers including notably Russia and Norway agreed to cut their exports by 500,000 barrels per day (bpd) in December in a deal to revive oil prices which slumped sharply amid global economic slowdown fears.

but Norway said last month it would probably raise its oil production as of July 1, concern that Russia will not extend this commitment has been fueled by a deal with the U.S. to guarantee oil supplies amid Middle East uncertainty.

Rodriguez appealed to rival states to maintain their curbs.

"It is imperative for all producers, whether inside or outside OPEC, to continue to exercise care in their production policies," he said, adding: "Prices do not discriminate among producers. If production is increased to push the market out of balance, then all will suffer." Rodriguez, from Venezuela, was recently appointed of the country's state-run oil company, in the wake of a short-lived coup.

He expressed confidence that this month's OPEC meeting in Vienna would find a successor, AFP quoted OPECNA as saying.