LONDON -- Struggling in its efforts to orchestrate crude-production cuts among non-member states, the Organization of Petroleum Exporting Countries will wait until an emergency meeting it has scheduled for December 28 in Cairo to determine its next move.
According to a Reuters report Tuesday, citing OPEC sources, the cartel welcomed Norway’s commitment to reduce production by 150,000 barrels per day, however its request that non-members reduce production by a combined 500,000 barrels per day have yet to be met. OPEC has said it will not reduce its own output quotas until non-members comply with its request.
Mexico has said it will cut by 100,000 barrels a day, Oman by 25,000 barrels a day, Angola by 22,500 barrels a day and Russia by 150,000 barrels a day. Norway’s commitment Monday left non-OPEC countries within 50,000 barrels a day of OPEC’s target. Russia produces 7.2 million barrels a day and has increased output this year by 520,000 barrels a day. OPEC had hoped Russia would reduce output by 200,000 barrels, and the refusal of Russian companies to do so has been a source of consternation between Moscow and cartel members.
Without a definite announcement before OPEC’s meeting, many analysts see crude prices staying within the recent $18 to $20 range.
