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Bodman Says He Doesn't Expect OPEC to Cut Oil Output on Feb. 1

By Mahmoud Kassem and Ayesha Daya

Jan. 23 (Bloomberg) -- U.S. Energy Secretary Samuel Bodman said he didn't expect OPEC to cut oil production when the group meets on Feb 1. because it would hurt economic growth.

``I don't expect OPEC will cut output,'' Bodman told reporters in Cairo today during a tour of the Middle East. ``It will not have a salutary effect on world economic production.''

The Organization of Petroleum Exporting Countries will decide whether to raise oil output targets to help reverse signs of a U.S. economic slowdown that has been partly attributed to high oil prices. The U.S. Federal Reserve cut interest rates in an emergency move yesterday aimed at averting recession. Their action follows a $150 billion growth package proposed by President George W. Bush on Jan. 18.

``The goal of those would be to stimulate the economy,'' Bodman said. ``If that happens, there would be a moderate increase in the price of energy.''

To contact the reporters on this story: Mahmoud Kassem in Cairo at mkassem1@bloomberg.net

Last Updated: January 23, 2008 10:17 EST

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