OPEC oil cartel set for crucial output meet

AUSTRIA: OPEC meets here Sunday for a pivotal production meeting that could cut crude output to defend slumping oil prices which have collapsed in the face of a fierce global economic downturn.

The spreading worldwide recession has ravaged energy demand and dragged oil prices far below the record highs above 147 dollars per barrel that were forged last July. In turn, that has slashed OPEC's precious revenues.

"The world economy is not as healthy as it should (be), so we should expect demand worldwide to be down," said Oil Minister Ali Ibrahim al-Nuaimi of influential OPEC kingpin Saudi Arabia on Saturday.

The Organization of Petroleum Exporting Countries, which pumps 40 percent of the world's crude supplies, will hold a regular production meeting in the Austrian capital where the cartel is headquartered.

Algeria has called explicitly for OPEC to slash output to energise weak oil prices, which have been slammed by weak demand arising from the global economic downturn. OPEC was also widely tipped to increase the pressure on its members to comply with last year's steep production cuts.

Vienna, Sunday, AFP