Iraq urges OPEC not to increase oil output

Iraq has urged the organisation of leading oil exporters (OPEC) not to increase output.

Iraq has urged the organisation of leading oil exporters (OPEC) not to increase output.

It said a decision to change quotas should be taken at the cartel's extraordinary meeting at the end of this year.

"OPEC must not yield to external pressures aimed at increasing production and flooding the market for political and economic interests that are not those of its member states," an oil ministry spokesman told the INA news agency.

He warned these pressures were "aimed at destabilising the market", which he urged OPEC to study in an "objective and fair way".

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The Organisation of Petroleum Exporting Countries (OPEC), which meets in Vienna tomorrow, faces a tough balancing act to set crude output amid highly volatile oil prices.

Western countries, where stock markets and economies have been hit hard following the attacks in the US, are looking for OPEC to increase output to keep oil cheap and help businesses and economies recover.

But OPEC's benchmark crude price has slumped below $21, following sharp declines in London and New York yesterday.

Prices rebounded slightly today, recouping part of a heavy fall in the previous session, after OPEC's president, Algerian oil minister Mr Chakib Khelil, indicated a production cut could not be ruled out.

AFP