OPEC set to cut oil output
Kuwait’s Energy Minister has said OPEC’s plans to cut output by 900,000 barrels a day from 1 November would proceed despite prices being still high.
“Yes, the 900,000 barrels cut from 1 November will go ahead,” said Ahmad Fahd al-Sabah.
“We are following the prices and we think it is still in the average of the OPEC price band, although it’s a little high,” the minister said on returning from Saudi Arabia after talks with his Saudi counterpart.
The Organisation of Petroleum Exporting Countries last month agreed to lower its output ceiling by 900,000 barrels a day, in order to avoid an oversupply in early 2004.
The Kuwaiti minister said the cartel’s members would continue to monitor prices until the scheduled OPEC ministerial meeting on 4 December.
“We will continue to follow up the prices and we will wait for the 4 December OPEC meeting to see what the price would be,” he said.
Asked if Kuwait backed a proposal for a price band of $25 per barrel, he said: “I am for the $ 22-28 a barrel.”