FROM SCRATCH NEWSWIRE

SCAVENGING THE INTERNET

KUWAIT READY TO CUT OUTPUT – Oil minister says his country will not hesitate to slash production if OPEC decides to cut output

Posted by Gilmour Poincaree on November 18, 2008

First Published 2008-11-17, Last Updated 2008-11-17 08:51:48

KUWAIT CITY – Kuwait is prepared to cut its oil output if its partners in OIL CUTSthe Organisation of Petroleum Exporting Countries decide to slash production, the oil minister said on Sunday.

“Kuwait will not hesitate to support the world oil market and will cut production… based on an agreement between OPEC members,” Mohammad al-Olaim told the official KUNA news agency.

He called for a revision of the oil market to “restore balance between actual need for crude,” and supply, adding that inventories of many countries are full of surplus oil that could lead to a glut in the market.

Kuwait is the fourth largest OPEC producer with a daily output of 2.4 million barrels.

The OPEC cartel is scheduled to hold an extraordinary meeting on November 29 in Egypt amid speculation that member nations will agree to cut output in a bid to boost plunging oil prices.

Iran, OPEC’s second largest producer, said it will propose slashing output by between 1.0 million and 1.5 million barrels per day (bpd).

Prices of crude have collapsed by about two-thirds since striking record peaks above 147 dollars in July on concern that a prolonged global recession could slam the brakes on energy demand.

OPEC agreed on October 24 to reduce production by 1.5 million bpd from November 1, but prices have continued to slide since then.

Oil prices closed mixed on Friday amid growing signs of economic woes in the United States and Europe, despite the possibility of a new output cut.

Light sweet crude for December delivery fell 1.20 dollars a barrel to close at 57.04 dollars while Brent North Sea crude for January rose 2.25 dollars a barrel to settle at 54.24 dollars.

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