Opec cuts to balance oil market

LONDON – Opec’s supply cuts should balance the world oil market and prevent the need for members to meet before a scheduled March gathering, Nigeria’s top oil official said on Wednesday.

Oil prices have come under pressure, even though the Organisation of the Petroleum Exporting Countries plans to lower supply by 500 000 barrels per day as of February 1, adding to a 1.2 million bpd reduction that started on November 1. “I would imagine if we have good compliance, which I have no reason to doubt, then we should be OK until the next regular meeting in March,” Nigeria’s Edmund Daukoru told Reuters in a telephone interview.Daukoru, who finished a one-year term as Opec president at the end of December, said the “very soft” market vindicated Opec’s decision in the Nigerian capital Abjua on December 14 to lower output further from February.”What we are seeing is the outcome of the surplus.”Opec’s next scheduled meeting is on March 15.The 10 Opec members bound by supply limits have made about two-thirds of the November 1 cut, according to a December 6 Reuters survey of consultants, analysts and oil-company sources.Nampa-Reuters”I would imagine if we have good compliance, which I have no reason to doubt, then we should be OK until the next regular meeting in March,” Nigeria’s Edmund Daukoru told Reuters in a telephone interview.Daukoru, who finished a one-year term as Opec president at the end of December, said the “very soft” market vindicated Opec’s decision in the Nigerian capital Abjua on December 14 to lower output further from February.”What we are seeing is the outcome of the surplus.”Opec’s next scheduled meeting is on March 15.The 10 Opec members bound by supply limits have made about two-thirds of the November 1 cut, according to a December 6 Reuters survey of consultants, analysts and oil-company sources.Nampa-Reuters