Russia threatens to reduce oil supply if prices hover at lows

ORAN, Algeria, Dec. 17 (Chinese media) -- Russian Vice Prime Minister Igor Sechin

said here Wednesday that Russia will cut its oil supply next year if the prices

remain hovering at lows in the world market.

"If the oil continues to trade at lows, Russian oil companies will reduce

their export volume," Sechin said at the extraordinary meeting of the

Organization of Petroleum Exporting Countries (OPEC)in Algerian coastal city of

Oran.

"Russia is considering reducing the supply volume by 16 million tons next

year, which equals to 320,000 barrels per day," he said.

At the same time, the oil companies will reduce their investment in the oil

industry which will further bring down the oil supply, he added.

Sechin did not confirm that if his country would cut oil output, nor did he

expressed Russia's willingness to join the oil bloc during his speech.

The Russian delegation headed by Sechin and Energy Minister Sergei Shmatke

arrived here Tuesday for attending the OPEC meeting as an observer, along with

Norway, Mexico and Oman.

The largest non-OPEC exporter said on Dec. 11 that it is ready to

coordinate its oil price policy with OPEC to stem the plunge in crude prices and

may slash its output.

OPEC extraordinary meeting opens amid output cut expectation

ORAN, Algeria, Dec. 17 (Chinese media) -- The Organization of Petroleum

Exporting Countries (OPEC) convened the 151st extraordinary ministerial meeting

here Wednesday in expectation of an output cut decision to shore up the plunging

oil prices.

Ministers from the 13-member oil cartel gathered in northwestern Algerian coastal city of Oran, exploring an agreement to address the slide of oil prices, which have shrunk more than two thirds from record mid-July highs above 147 U.S. dollars in the face of a global economic downturn. Full story