Font Size

- Aa +

Thu 22 Jan 2009 07:26 AM

Font Size

- Aa +

OPEC 'will cut output again' if oil slump continues

Algerian energy minister says action could be taken in March to help oil price.

OPEC will cut oil output further in March if it needs to in an effort to stop declining oil prices, Algerian minister of energy and mining Chakib Khalil has announced.

"We will do another production cut if we need to in our meeting next March 15 to push prices up," Khalil said on sidelines of a ceremony naming new executives of the Algerian Electricity and Gas.

But Khalil did not specify the volume of the cut and said the OPEC oil ministers would decide during the March meeting, Kuwait News Agency reported.

OPEC oil ministers agreed in December to reduce production by 4.2 million barrels per day (bpd) based on September 2008 output.

This cut took effect as of January 1 and Khalil said OPEC members were 100 percent committed to the cuts.

The minister added that he anticipated crude oil prices to rebound during the third quarter of this year.

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.