OPEC not considering output cut despite price fall: president

Kuwait City  (Platts)--14Nov2005

OPEC President Sheikh Ahmed Fahed al-Sabah said Monday that the producer
group was not considering a production cut despite falling oil prices and
would wait for a Dec 12 meeting in Kuwait to decide on whether to extend an
offer of 2-mil b/d of spare capacity beyond end December.
     Asked by reporters if OPEC was considering cutting production to stem a
recent fall in oil prices, Sheikh Ahmed replied: "No. Until now I don't think
they have to cut the production."
     He added: "We will continue to follow up the market. I think the prices
have started to be more stable. For that, until now, we don't have any idea to
cut the production."
     Sheikh Ahmed, who is the oil minister of Kuwait, was asked what price
level OPEC was ready to defend and where he saw prices going this winter. He
replied: "We have to wait. Winter hasn't started yet. For that, we have to
follow up the prices and OPEC doesn't have a target for prices. The most
important is the demand and supply and up to now, we don't have a target."
     OPEC ministers agreed in Vienna in October to maintain the group ceiling
at 28-mil b/d but put at the market's disposal 2-mil b/d of spare capacity
should it be required. The offer was valid till end December 2005.
     Sheikh Ahmed, speaking in parliament, said the group had yet to decide
whether it will extend the offer of spare capacity into 2006.
     "We will wait for the meeting in December on this," Sheikh Ahmed said,
referring to a planned OPEC meeting in Kuwait City Dec 12. 
-- Miriam Amie, newsdesk@platts.com

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