OPEC ministers said Saturday they had agreed in principle to cut oil output and drain excess crude from a glutted market to try to bolster sagging prices.
But they acknowledged they still had many details to work out before they can proclaim a successful defense of oil prices. Traders, skeptical of OPEC discipline and solidarity, are prepared to drive prices lower in the absence of a convincing production pact.Several ministers emerging from 21/2 hours of strategy talks told reporters the group was prepared to slash production, which is far outpacing demand.
"We have reached agreement in principle but not finalized yet," Kuwaiti Oil Minister Ali Ahmed al-Baghli said. "We shall finalize the agreement in bilateral talks tonight and tomorrow morning."
Gabonese Oil Minister Jean Ping said the tentative plan was to lop almost 1.5 million barrels a day from OPEC's current production of around 25 million, probably via proportionate cuts among members.
But Qatari Oil Minister Abdullah Bin Hamad al-Attiyah said the sticky issue of exact numbers for individual output limits was not yet on the table.
With markets awash in excess crude, ministers have acknowledged they need a strong accord to rein in production and reduce the glut.