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OPEC unlikely to cut output
BUDAPEST, Nov 25 : The Organisation of Petroleum Exporting Countries (OPEC) is unlikely to cut production at its meeting in Vienna this week, Iranian Oil Minister Gholam Reza Aqazadeh said on Sunday, reports Reuter.
Aqazadeh arrived in Budapest en route lo the OPEC meeting for a day of talks with Hungarian government officials on selling up lo two million tons of crude oil lo Hungary.
He held talks with Hungarian Minister of Industry and Trade Akos Bod and was due to meet Minister of international Economic Relations Bela Kadar on Monday
OPEC Oil Ministers gather for their semi-annual meeting on Tuesday to set production strategy for early next year.
“It is winter now (in the northern hemisphere) and OPEC's production does not satisfy the market's needs, so the reduction of production
cannot be expected," Aqazadeh told reporters.
OPEC s members arc deeply divided about how to handle a potential price collapse toward the middle of next year, when demand drops during the northern summer and exports from Kuwait and Iraq could rise sharply.
Some members have said that OPEC should plan output cuts that would shore up oil prices before they start to slide, since the next OPEC meeting in March could be loo late.
Aqazadeh said he expected OPEC's ministers also to discuss the problems of environmental protection.
In Budapest, Aqazadeh was expected to discuss a schema for a triangular oil swap involving Moscow, which has hinted that it might have to cut oil deliveries to Hungary in order to satisfy domestic demand.
Under the scheme. Hungary
would pay Iran for oil. Iranian oil would be piped to the Soviet Union, which would in turn send crude to Hungary through the friendship pipeline linking the two countries.
However, an Iranian oil industry official said a natural gas pipeline would have to be converted in order to pipe oil to the Soviet Union.
In September, Yugoslavia's civil war blocked the flow of oil through the Adria pipeline linking Hungary with the Adriatic Sea coast, which was the country's only major route for oil imports apart from the friendship pipeline.
Bod said he and Aqazadeh would discuss the possibility of refining Iranian crude in Hungary and involving Iran in the privatisation of the country's state-owned oil industry.
They would also talk about long-term plans to build a natural gas pipeline linking Iran with cast and central Europe.