MercoPress. South Atlantic News Agency

Oil tumbles to 47 USD; call for Russia & Norway to join OPEC

While oil skidded to its lowest level since May 2005 in New York on Tuesday, the head of OPEC (Organization of Petroleum Exporting Countries) said he hopes oil producing nations like Russia will join the organization, or at least agree to output cuts to help spark a rally in prices.

Chakib Khelil, who is also Algeria's oil minister, said oil producers such as Russia, Norway and Mexico should "express their solidarity" with OPEC, either by joining the cartel or by following its reductions of output quotas. "What we really want is for these countries to become members of OPEC" Mr Khelil said on the sidelines of a conference in Algiers, according to the APS news agency. If the three countries refuse to join OPEC, they should reduce oil production, Mr Khelil said. Russian officials say they are preparing a cooperation agreement with OPEC that could be examined at the cartel's meeting this month in Algeria. Meanwhile in the New York Mercantile Exchange, light, sweet crude for January delivery was down 2.32 US dollars, 4.7%, at 46.96 a barrel, the lowest since May 20, 2005. Brent crude on the ICE Futures exchange closed 2.53 lower to settle at 45.44 USD a barrel. The second day of big losses for oil follow OPEC's decision not to revise output levels last weekend in Cairo, postponing any decision to a meeting December 17. The Russian Interfax news agency reported the country's overall oil output in the first 11 months of 2008 was down 0.5% from the year before, sustaining a negative trend that began in March. Production of crude and condensate averaged 9.79 million barrels a day, the news agency said, citing Ministry of Industry and Energy statistics. OPEC supply cuts totaling 2 million barrels a day so far this year have failed to halt oil's plunge from highs above 145 USD a barrel last July as the outlook for the world economy remains gloomy. Russian Deputy Primer Minister Igor Sechín recently revealed that Moscow is drafting a cooperation project which will be presented during the next OPEC ministerial scheduled for December 17 in Oran, Algeria.