Oil cutback expected Friday

| 12/27/2001

Ministers have to meet, but OPEC oil producers are likely to announce a 1.5 million barrel-per-day (bpd) cutback when they hold an emergency meeting in Cairo on Friday, a Gulf source said in a released statement.

Russia and Norway each have pledged cuts of 150,000 bpd. Mexico has pledged to cut 100,000 bpd, Oman, 40,000 barrels and Angola 22,500 barrels. OPEC had previously announced a decision by Norway to cut its oil output by 150,000 barrels per day from January 1 to June 30, 2002. If the cut is agreed upon, it will remain in effect for six months, but it could be extended if prices are still low. In order to co-ordinate the organization's decision and to review the current oil market situation, OPEC oil and energy ministers will meet in Cairo, Egypt, on Dec. 28, 2001.