Despite a the trip by U.S. Energy Minister Bill Richardson to member states that finished Monday, OPEC countries, which produce 40% of the world's oil, showed no willingness Tuesday for anything short of the anticipated 1.5-million-barrels-a-day production cut that has been expected from OPEC.
Some OPEC members would like to see as much as two million barrels cut from daily production.
Saudi Oil Minister Ali al-Naimi said OPEC will make cuts of at least 1.5 million barrels a day to maintain an oil price of about $25 (all figures in U.S. dollars) a barrel.
"We saw the supply-demand data, and we decided we had to make a reduction. Had we carried on with output at this level we would have flooded the market," he said.
On Monday, a basket of OPEC crudes was priced at $24.60.
Some feel an oil-production cut, and subsequent price increase, will worsen economic conditions around the world.
"OPEC appears to believe that the world economy can live happily with $30 oil. It is wrong," said report from the British-based Centre for Global Energy Studies. "By cutting output from February onwards, OPEC will prevent the rebuilding of stocks that the world needs."
However, OPEC President Chakib Khelil said energy costs will not skyrocket because prices are already integrating expected production cuts.
