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| Version 2 | Version 3 |
|---|---|
| Call for record Opec output cut | Call for record Opec output cut |
| (20 minutes later) | |
| Leaders of the oil producers' cartel Opec are gathering in Algeria where they are under pressure from Saudi Arabia to make a record cut in output. | Leaders of the oil producers' cartel Opec are gathering in Algeria where they are under pressure from Saudi Arabia to make a record cut in output. |
| Saudi Arabia, the world's largest oil producer, predicts the cartel will reduce production by two million barrels a day at the meeting. | |
| Saudi oil minister Ali al-Nuaimi said he expected Opec non-members to cut output by 600,000 barrels per day. | Saudi oil minister Ali al-Nuaimi said he expected Opec non-members to cut output by 600,000 barrels per day. |
| Oil giant Russia, a non-member, will also be represented at the meeting. | Oil giant Russia, a non-member, will also be represented at the meeting. |
| A combined cut of 2.6 million barrels per day represents 3% of global output. | A combined cut of 2.6 million barrels per day represents 3% of global output. |
| Oil prices have slumped from a peak of $147 a barrel in July to about $44 a barrel, as demand has weakened amid the global economic downturn. | Oil prices have slumped from a peak of $147 a barrel in July to about $44 a barrel, as demand has weakened amid the global economic downturn. |
| Cutback hopes | Cutback hopes |
| Expectation is high that oil producers are ready for co-ordinated actions to boost crude prices. | Expectation is high that oil producers are ready for co-ordinated actions to boost crude prices. |
| Opec's problem is the result of the worldwide economic downturn Andrew Walker, BBC economics correspondent | Opec's problem is the result of the worldwide economic downturn Andrew Walker, BBC economics correspondent |
| The Iraqi oil minister, Hussain al-Shahristani, said that at least two million barrels a day of oil production needed to be cut. | The Iraqi oil minister, Hussain al-Shahristani, said that at least two million barrels a day of oil production needed to be cut. |
| In terms of prices, he said he was hoping for a target oil price of "somewhere between $80 to $100". | In terms of prices, he said he was hoping for a target oil price of "somewhere between $80 to $100". |
| Nigeria's oil minister, Odein Ajumogobia, said he too would support a cut of two million barrels a day. | Nigeria's oil minister, Odein Ajumogobia, said he too would support a cut of two million barrels a day. |
| "I would give such a proposal serious consideration. It's in everyone's interest for supply and demand to be better aligned. They are clearly not at the moment." | "I would give such a proposal serious consideration. It's in everyone's interest for supply and demand to be better aligned. They are clearly not at the moment." |
| The International Energy Agency recently forecast that global demand for oil would fall this year, the first decline since 1983. | The International Energy Agency recently forecast that global demand for oil would fall this year, the first decline since 1983. |
| However, the fall in the price of oil has been helpful for central banks, especially in the developed countries. | However, the fall in the price of oil has been helpful for central banks, especially in the developed countries. |
| It has eased their concerns about inflation and left them free to tackle their slowing economies by cutting interest rates. | It has eased their concerns about inflation and left them free to tackle their slowing economies by cutting interest rates. |
| The BBC's economics correspondent Andrew Walker said: "Opec's problem is the result of the worldwide economic downturn." | The BBC's economics correspondent Andrew Walker said: "Opec's problem is the result of the worldwide economic downturn." |
| "Oil use has declined in the developed countries, and is growing more slowly in developing economies," he said. | "Oil use has declined in the developed countries, and is growing more slowly in developing economies," he said. |
| On Tuesday, US light, sweet crude fell 18 cents to trade at $44.33 a barrel. | On Tuesday, US light, sweet crude fell 18 cents to trade at $44.33 a barrel. |
| Brent crude rose 55 cents to $45.15 a barrel. | Brent crude rose 55 cents to $45.15 a barrel. |