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OPEC Needs to Cut Oil Output 800,000 for Compliance (Update1)

By Anthony Dipaola and Ayesha Daya

March 9 (Bloomberg) -- OPEC needs to cut oil output by an additional 800,000 barrels a day to comply with existing quota reductions, the group’s secretary-general said.

The group will lower its 2009 demand forecast to a drop of 1 million barrels a day this year, compared with 600,000 barrels a day it predicted in its February report, Abdalla el-Badri said. OPEC’s March report will be published later this week.

“If we see 80 percent compliance” with existing commitments to restrict supply “then we still need 800,000 barrels to cut,” el-Badri told reporters in Qatar today.

The Organization of Petroleum Exporting Countries meets in Vienna on March 15 to examine compliance with a December decision to lower output quotas by a record 2.2 million barrels a day and look at estimates for future crude demand.

To contact the reporter on this story: Anthony Dipaola in Dubai at adipaola@bloomberg.netAyesha Daya in Dubai adaya1@bloomberg.net

Last Updated: March 9, 2009 04:50 EDT

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