Khatami blames price slide on non-OPEC countries

Iranian President Mohammad Khatami blamed slumping crude oil prices on what he said was an output increase by non-OPEC oil producers…

Iranian President Mohammad Khatami blamed slumping crude oil prices on what he said was an output increase by non-OPEC oil producers, according state radio. He was quoted from a phone conversation he had with Venezuelan President Mr Hugo Chavez.

The report said Mr Khatami promised OPEC members will "try to solve the problem," expressing hope that efforts by Iran, Venezuela and all other OPEC members and non-OPEC members will "prevent a crash in oil prices."

Mr Chavez also expressed concern over slumping prices and the hope that OPEC and non-OPEC oil producers will "find a solution" soon, the radio said.

Yesterday, OPEC Secretary-General Mr Ali Rodriguez said the OPEC oil-producing cartel could cut production in response to slumping oil prices before expected US military action.

READ MORE

Crude prices have slumped after the attacks on the US, as markets react to slowing demand from increasingly recession-hit economies around the world. OPEC, which produces 40 per cent of the world's crude, held its nerve last week at a ministerial meeting in Vienna, keeping its production quotas unchanged despite slumping revenues.

But pressure has grown on OPEC to do something to prop up prices, and Mr Rodriguez said the cartel may be forced to take action even if expected US military action is not launched immediately.

"Maybe without military action we can make some decision," he said. He said a cut in production is a possibility, "but only one possibility".

However, the Middle East Economic Survey says in its October 8th edition that there is very little chance that the OPEC oil-producing cartel will cut production at this time.