Iraqi oil minister says OPEC likely to cut production

Graphics shows the price of crude oil futures in the past 13 months. The price of light, sweet crude oil for March delivery rose 85 cents to settle at 41.17 dollars a barrel on the New York Mercantile Exchange on Feb. 5, 2009. (Xinhua/Meng Lijing)
Photo Gallery

BAGHDAD, Feb. 7 (Xinhua) -- OPEC members are expected
to decide to cut oil production in March in an attempt to raise oil price to70
U.S. dollars a barrel, Iraqi Oil Minister said on Saturday.

"OPEC members will meet in March, and there is an
intention to decide further cut to raise prices," Hussein al-Shahristani told
reporters at a symposium on oil and gas industry development.

"We expect a cut that the crude prices will be more
than 70 dollars a barrel," Shahristani said in Baghdad's Rasheed Hotel.

However, Shahristani said that the raise of the oil price will be achieved gradually and not necessary in the coming months.

A petrol station in front of the OPEC headquarters is pictured in Vienna October 24, 2008. (Xinhua/Reuters File Photo)
Photo Gallery

Shahristani also criticized the red tape in Iraq,
blaming it for the delay of efforts to boost the country's oil production.

He also hoped that Iraq could rapidly achieves oil
sector reconstruction and to form a national oil company, which can conclude oil
deals without waiting for cabinet approval.

Iraq is a member of the Organization of Petroleum
Exporting Countries (OPEC). The organization is not bounding Iraq by its
production quotas because of the country's dilapidated oil infrastructure.

Iraq oil reserve is reportedly to be the world's
third-largest, which needs billions of dollars investment to overhaul its oil
industry infrastructure and increase oil and gas output after decades of wars
and sanctions.