"If we don't cut production by 1.5-million barrels per day in January, it is clear that prices will collapse quickly and we can add production as well to exert additional pressure," he told reporters at a media forum.
OPEC has previously said it would not dip into its substantial spare production capacity, measuring about 5 million bpd, because cuts should be a sovereign decision by independent exporters based on national interest. Mexico, Norway and Oman have all agreed to substantial cuts in line with OPEC's demands, but Russia has offered only a small reduction.
"It is neither in the interest of Russia or other countries in OPEC and non-OPEC that prices collapse," Khelil said.
The U.S. Dept. of Energy reported yesterday that the price of diesel at the pump fell this week to $1.223 a gallon. Diesel prices have fallen 10 straight weeks since rising to $1.527 the Monday following the September 11 terrorist attacks.
