OPEC comfortable with prices around $60/barrel: Kuwait minister

Kuwait City (Platts)--12Dec2006

Kuwaiti oil minister Sheikh Ali al-Jarrah al-Sabah Tuesday reiterated
that he did not see the need for another OPEC production cut in Abuja if oil
prices remained at current levels.
"If the level is what we have here, we are not in favor [of another
cut]," Sheikh Ali said, adding that he was referring to crude prices in the
$60s. "I imagine most of the OPEC countries are comfortable with that," Sheikh
Ali told reporters at the airport, before departing for OPEC's December 14
meeting in the Nigerian capital of Abuja.
Asked if he thought the market was oversupplied, the Kuwaiti minister
replied: "Well, we think yes." However, he could not put a figure on the
oversupply or say whether it was slight or heavy, before looking at reports
from the OPEC secretariat, Sheikh Ali said.
On what he thought OPEC ministers might decide at Thursday's meeting,
Sheikh Ali said: "We are going to study all the reports and then we will
decide." He wouldn't say if he thought the group might decide on another cut,
but indicated that if there was consensus for a further reduction, Kuwait
would go along with it.
Kuwait's official news agency KUNA, citing an energy ministry statement,
said Monday that the Abuja meeting would discuss the possibility of cutting
crude production by around 500,000 b/d in a bid to keep prices steady at close
to $60/barrel.
Questioned by reporters about the statement, Sheikh Ali did not comment.
--Miriam Amie, newsdesk@platts.com

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