Iranian governor of the Organization of Petroleum Exporting Countries (OPEC) Hossein Kazempour Ardebili said on Sunday that it would be necessary for the oil cartel to cut its production further to counter an oversupply of crude oil, the official IRNA news agency reported.
Ardebili told IRNA that "A fall in world economic growth, a drop in international oil demand against OPEC and International Energy Agency (IEA) estimates as well as an unexpected output rise by non-OPEC oil producers which is predicted to continue in 2007 and accumulation of oil reserves and products all indicate that the oil market needs a new output cut."
Reducing OPEC output had so far left no negative impact on world market as there is still oversupply in the market compared to the present demand, the Iranian official said.
On Dec. 14, the 11 members of OPEC will meet in Abuja, Nigeria, to decide on a possible new output cut in a bid to boost oil prices after the oil cartel had decided in October to slash its oil production by 1.2 million barrels per day from November.
Ardebili predicted that a new reduction in OPEC output would be about 500,000 to one million barrels per day, IRNA reported.
On Friday, oil prices rose again as OPEC may cut its production in the coming weeks and weather forecasts predicted a colder winter which would stoke more heating demand in the United States.
Saudi Oil Minister Ali al-Naimi had said in the day that markets were "significantly" oversupplied, a signal the OPEC heavyweight may favor a further cut to output at the group's December meeting.