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Iran Calls for Cut in OPEC Oil Production

Iran`s OPEC governor, Hossein Kazempour Ardebili, called on OPEC to cut production quotas in OPEC`s next meeting in mid-December, in order to stop the over production of crude oil. Ardebili told Iran`s official news agency IRNA that "Some factors including a decrease in the world`s economic growth and accumulation of oil stocks and production, shows that the market needs another cut in OPEC production," Some members of OPEC are concerned with the world`s growing fuel stockpiles, while others see no reason to cut oil production quotas as the price of crude oil is remaining stable over the $60 mark.

The 11 OPEC members will meet in Nigeria`s capitol, Abuja on December 14 to discuss further cuts in production quotas in an effort to stabilize oil prices. Ardebili said that the next cut in production quotas should range anywhere between 500 thousand and 2 million barrels a day. Nigeria`s Oil minister and president of OPEC, Edmund Daukoru, estimated that OPEC will cut production quotas by at least half a million barrels a day in their next meeting in December. Saudi Arabia`s oil Minister Ali al-Naimi said that the oil market is suffering of "serious" instability because of growing global fuel stockpiles, and that 100 million barrels need to be taken out of the market.

On the other hand, a Libyan official said that the petroleum market is close to stability, and there is no need to cut oil quotas more than was cut in the cartels last meeting. Kuwait`s oil minister agrees that OPEC doesn`t cut quotas as long as the price of oil stays over $60 a barrel. The oil minister of the United Arab Emirates believes it is too early to assess the impact of the last quota reduction and therefore it would be irresponsible to decide now.