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OPEC, independents said near deal
( 2001-12-21 13:32 ) (7 )

OPEC and independent oil producers are close to reaching an agreement to cut output by 2 million barrels a day, Venezuela's oil minister said Thursday.

``We're practically there,'' Alvaro Silva told reporters.

But he also suggested that the Organization of Petroleum Exporting Countries may cut production even if non-OPEC oil producers fall short of the 500,000 barrels a day reduction they have been asked to contribute.

OPEC has said it will trim output by 1.5 million barrels a day if independent producers come up with a combined 500,000 barrels a day cut.

So far, non-OPEC members Russia, Norway, Oman, Angola and Mexico have committed to a combined cut of 447,500 barrels a day. OPEC plans to meet Dec. 28 in Cairo, Egypt to decide whether to make that cut.

``It doesn't have to do with reaching an exact figure,'' Silva said, adding that market fundamentals will determine how long the cut lasts.

OPEC is trying to boost oil prices, which have fallen more than 30 percent since the Sept. 11 attacks in the United States. The average price of crude oil in OPEC countries was $17.80 a barrel Wednesday, the most recent available, according to OPEC news agency Opecna.

The group has a target price range of $22 a barrel to $28 a barrel.