OPEC president says cannot rule out new OPEC cut in Abuja

Abuja (Platts)--11Dec2006

OPEC's Nigerian president Edmund Daukoru said Monday he could not rule
out a decision by OPEC to cut crude production for the second time in two
months when the cartel meets in the Nigerian capital Abuja Thursday.

Asked whether an additional output cut on top of the 1.2 million b/d
agreed in Doha in late October could be ruled out, Daukoru said: "No, we
cannot rule it out. I would definitely not like to rule out a cut."

Earlier Monday, Saudi-owned pan-Arab newspaper Al-Hayat reported that
OPEC would not reduce output in Abuja but would hold an extraordinary meeting
in Vienna in January to review market developments.

Most OPEC members, in the run-up to the Abuja meeting, have appeared to
be lining up in support of a further cut. Saudi oil minister Ali Naimi said
December 1 that there was an excess of 100 million barrels in OECD stockpiles
and that this needed to be removed in order to restore balance to world oil
markets. Naimi did not, however, say that OPEC should reduce output at the
upcoming meeting.

Daukoru, who is also Nigeria's oil minister, was quoted December 1 by
French news agency AFP saying there was likely to be "some further trimming"
in Abuja and that he did not expect "anything less" than a cut of 500,000 b/d.

Several OPEC officials have said oil markets are oversupplied. Daukoru,
speaking to Platts Monday by telephone in Abuja, declined to put a figure on
how much oversupply there was. "I don't know about the exact volumes," he
said. "I have heard up to 1 million b/d, but the price strength speaks for
itself," he added.

Daukoru said that there were usually differences in member countries'
views ahead of meetings, and that this week's talks would consider the
opinions of all members.

"Before the meeting there are usually differences of views. It is to be
expected. We are not all in the same situation. But when we meet, we often
come up with a surprise, let the market not take us for granted, that is my
message, we usually come up with a surprise. We will take everyone's point of
view into account."

At 1518 GMT, North Sea Brent futures were trading at $61.98/barrel, down
22 cents from Friday's close, while US light crude futures were trading at
$61.45/barrel, down 62 cents from Friday's close.

For more news, request a free trial to Platts Oilgram News at
http://www.platts.com/Request%20More%20Information/index.xml?src=story
or subscribe now at
http://www.platts.com/infostore/product_info.php?cPath=1_29&products_id=29