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OPEC oil cut in doubt amid anger over Russia
By Michael Georgy and Mona Megalli
VIENNA, Nov 14 (Reuters) - OPEC on Wednesday raised doubts about action on new output curbs aimed at lifting oil prices amid growing frustration over a lack of cooperation from its main non-OPEC rival Russia.
Ministers said a proposed reduction of up to 1.5 million barrels a day, six percent, was in question because of the poor response from Russia, in particular, to OPEC's call for help in supporting prices.
Kuwaiti Oil Minister Adel al-Subaih, shortly before the start of a 0900 GMT meeting which continued at 1200 GMT, said any OPEC cut should be conditional on a proportional reduction by Russia, the world's second biggest exporter.
"I would not support the cut," he said. "Kuwait believes that non-OPEC is the issue and unless there is positive cooperation I think little can be done."
And OPEC's most influential minister, Saudi Arabia's Ali al-Naimi, said the focus now was firmly on Russia.
"They have the biggest capability. They are the key to price stability," Naimi told reporters. Moscow's offer to remove a token 30,000 bpd was "disappointing," he said.
Delegates raised the possibility of postponing the implementation date for lower OPEC limits, pending more talks with Russia, or even of deferring an agreement altogether.
"OPEC may well not cut, not even a barrel, if Russia does not cut a proportionate amount," a senior OPEC official told Reuters.
Venezuela emerged with a compromise proposal that would see OPEC immediately remove a smaller one million bpd, without attaching strings to further non-OPEC action, a delegate said.
Russia has lifted crude exports sharply in recent years, topping three million barrels a day last month.
Oil prices, down sharply since September on the gloomy economic outlook, subsided further with London Brent losing $1.36 to $19.45 a barrel, not far from two-year lows.
Strenuous efforts aimed at drumming up support from big non-OPEC suppliers have failed to make much headway with OPEC's other targets, Mexico and Norway yet to pledge solid support.
GETTING RUSSIA ON BOARD
Naimi said on Tuesday he saw the need for a hefty 1.5 million bpd OPEC reduction twinned with 500,000 bpd from non-OPEC to combat global economic decline and restore prices to a $25-a-barrel target.
"It would be devastating if they did not cut," said energy consultant Yasser Elguindi of Washington's Medley Group. "The price would be heading for the low teens and quickly."
OPEC delegates said anger over non-OPEC's response had rallied support around an initial Iranian proposal that would insist on greater backing from independent suppliers before the cartel acts.
Oil Minister Bijan Zanganeh said on Tuesday: "We need non-OPEC to contribute seriously with OPEC. I believe that every OPEC cut should be subject to real non-OPEC contribution."
"We want a period of negotiation. We are endeavouring to get the Russians on board but that should not raise doubts about our making a decision," said a senior delegate.
Russian Deputy Prime Minister Viktor Khristenko, in charge of regulating crude exports, said his country's position had already been made clear to OPEC.
"Russia held fairly active discussions with OPEC member states. The position of Russia is quite clear and precise," he told reporters in the Azeri capital Baku.
Norwegian Oil Minister Einar Steesnaes told Reuters in Oslo: "The way I see the situation today there is no reason to implement measures."
But Mexican energy ministry sources said it was "very probable" Mexico would cut in the event of an OPEC reduction.
Three times already this year OPEC has lowered output limits but a slump in demand and steady supply growth from its rivals has pushed world inventories into surplus.
Lower OPEC limits would leave output by the group, which accounts for 60 percent of world oil trade, at its lowest in 10 years.
If it were to remove 1.5 million bpd, combined quotas for 10 member countries would drop to 21.7 million bpd from 26.7 million at the start of 2001.
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