MercoPress. South Atlantic News Agency

International oil market in reshuffling process

Oil Petroleum Exporting Countries president Edmund Daukoru said Friday that the group is likely to cut production by at least half a million barrels a day. The specific amount will be decided at the OPEC meeting next December 14th in Nigeria.

"I don't expect anything less" than 500,000 barrels per day to be cut, said Daukoru who declined to give a specific figure: "when we meet, we will look at the data and the trends".

"There is likely to be some further trimming, the actual amount will depend on the circumstances" said Edmund Daukoru who is Nigeria's oil minister and will be hosting the OPEC meeting in Abuja.

Although oil prices retreated Friday amid profit taking and easing worries that OPEC will significantly reduce output to boost prices, on Thursday they jumped to a two month high (over 60 US dollars) on news of declining U.S. fuel inventories and the approach of the Northern Hemisphere winter, when heating fuel demand rises.

Venezuelan President Hugo Chavez said Thursday that OPEC members had reached a consensus to keep oil prices at 50 US dollars a barrel. The average for the OPEC basket price this week currently stands above 56 US dollars a barrel.

In Egypt Saudi Oil Minister Ali al-Naimi said Friday the world oil market was "significantly" out of balance because of high fuel stockpiles and that 100 million barrels needed to be removed.

"The market is out of balance" said the oil minister of the world's largest crude exporter and OPEC's biggest producer. "Inventories in the U.S. are high, not low ... That's why the market is out of balance" Naimi told reporters in Cairo.

"It will take 100 million barrels out of the market" he said when asked what it would take to achieve balance. However Naimi did not say if he thought there should be a deeper cut to remove any overhang or whether the group should carry on with its existing reduction of 1.2 million barrels per day.

Oil markets were also rattled this week when Angola announced it has plans to apply to join OPEC, a move that if successful, should boost the African nation's global profile and the power of the group of oil exporting countries.

The Angolan oil ministry said the country hoped to become OPEC 12th member by March, adding that it would produce "deep financial advantages". Angola is sub-Saharan Africa's second biggest oil exporter, behind Nigeria. The country is now producing 1.4 million bpd, and this is expected to hit 2 million next year.

The recently elected government of Ecuador and Sudan has also said they are intent in joining OPEC. Angola, Ecuador and Sudan could increase OPEC proven reserves by 10.5 billion barrels.

OPEC eleven current members are Algeria, Indonesia, Iran, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, Venezuela and Iraq.