OPEC president Mr Ali Rodriguez said yesterday global oil inventories were rising and exporters should be ready to cut output as soon as January if decade-high prices begin to fall.
Rejecting a call from US Energy Secretary Mr Bill Richardson for more production from the 11member exporters' cartel, the Venezuelan said the world's 76 million barrel per day (bpd) market was already oversupplied by 1.4 million bpd, or 2 per cent.
"If prices fall, we could cut production as soon as January," Mr Rodriguez said at a conference of oil producer and consumer nations in the Saudi capital.
Global stocks of crude oil and refined products such as gasoline were now equivalent to 80 days of demand, which Mr Rodriguez said was an equilibrium level. OPEC oil ministers last week decided not to raise output again this year despite prices well above their $22-$28 per barrel target, which consuming countries say have damaged growth and stoked inflation. Blaming factors unrelated to crude supply, such as refining bottlenecks, speculation and transport problems, the Arab-dominated cartel said it would consider the matter again in two months.
