OPEC chief calls for cuts in output, not in prices
OPEC president Mana Said al-Oteiba called for swift cuts in oil production to deal with the world glut, ruling out the other option of lowering OPEC prices, according to an interview with a United Arab Emirates (UAE) newspaper.
''Cutting prices will not solve the problem of the market surplus, and the successful solution is to cut production,'' said Dr. Oteiba, the UAE's oil minister. Oil market analysts saw his remarks as directed chiefly at the Saudis. Saudi Arabia, producing nearly 8 million barrels daily, is one of the few OPEC exporters that could cut production without severe financial loss.