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Omani Minister Rounding Up More Oil Pledges : Diplomacy: Three small non-OPEC producers say they will cooperate, but there are no firm promises to cut production.

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From Reuters

Oman’s oil minister, on a mission to shore up sinking crude oil prices, will next apply his diplomacy in Norway, Britain and Russia after securing pledges of support from three minor, non-OPEC producers.

Omani Oil Minister Said Shanfari said here Monday that his Yemeni, Egyptian and Syrian counterparts have said they are ready to cooperate.

“The talks I had in Yemen, Egypt and Syria are very good, and the outcome is more than what we expected. Everybody is ready to cooperate and coordinate to rescue the oil prices,” he said.

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U.S. traders generally dismissed the talk by non-OPEC producers to try to boost prices, saying cuts by small producers would not be enough.

On the New York Mercantile Exchange, February crude oil futures fell 35 cents a barrel to settle at $14.13.

Yemen produces about 340,000 barrels a day, Syria 550,000 barrels a day and Egypt about 870,000 barrels.

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The three countries gave no indication of the volume of cuts they might consider or whether they might make unilateral cuts.

Oman, which in the past has led efforts to coordinate between OPEC and non-OPEC states, produces about 800,000 barrels a day. It has said it will cut output by 5% starting in January.

Shanfari said he is seeking a meeting of non-OPEC producers to discuss how to restore stability to oil prices.

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“The Russians have been very cooperative, and they gave a positive initial response,” a source close to the minister said.

Most producers outside the Organization of Petroleum Exporting Countries have either rejected outright or given a lukewarm response to OPEC calls for cuts.

Norway and Britain, whose increased output has been partly responsible for weak prices, have shown no interest in cutting.

The Omani minister, who is touring fellow non-OPEC oil producers, said collective action by producers would help prices recover. Action does not necessarily mean cutting production, he said.

“I am not saying we should cut production. What we are seeking now is cooperation and coordination by everybody,” Shanfari said.

The minister is due to hold talks in Norway today before heading to London later in the day for talks with British energy officials that may take place Wednesday morning.

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“We will discuss what action we should take when we meet again by God’s will,” he said.

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Asked whether the proposed meeting would group OPEC and non-OPEC producers, he said non-OPEC producers would work with the Gulf Cooperation Council countries: Saudi Arabia, Kuwait, Qatar, Oman, Bahrain and the United Arab Emirates.

Oman and Bahrain are non-OPEC producers, while the rest belong to the oil cartel.

The Gulf Cooperation Council states, which include the world’s biggest oil exporter, Saudi Arabia, offered at a summit last week to cut output if all oil producers agreed to a comprehensive accord for “balanced” cuts.

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