U.S. Pushes for Modest, 2-Phase Oil Output Cut

U.S. Energy Secretary Bill Richardson urged OPEC to agree to a modest, two-phased oil output cut at its January meeting to spare the world economy any harmful effects from higher oil prices. “The United States feels there should be no production decrease,” Richardson said in Abu Dhabi after talks with the United Arab Emirates oil minister. “But we are realistic, and it is important that any cut in January will not aggravate the market. . . . Our objective is as small a cut as possible.” Qatari oil minister Abdullah bin Hamad al-Attiyah said after talks with Richardson in Doha that Washington also preferred a two-phased oil output cut to balance the market and avoid a price collapse. OPEC oil ministers have shown little inclination to adopt Washington’s suggestion of a two-phased output cut. Richardson had earlier said in Abu Dhabi that Washington was concerned that a drastic oil output cut by the Organization of the Petroleum Exporting Countries could send world oil prices rocketing and harm the world economy. OPEC ministers will meet in Vienna on Wednesday to agree on production cuts. Leading producer Saudi Arabia prefers a reduction of 1.5 million barrels per day, whereas other OPEC members have talked of cuts of as much as 2 million bpd.