All OPEC countries will be able to increase their production to fulfill the 800,000 barrel a day output increase agreed by the 11-member group on Sunday, Algeria's oil minister said.
Chakib Khelil also forecast that the production hike will bring oil prices down to around 25 dollars a barrel in the short term.
"We believe the decision will have a very positive impact on prices, which will stabilize in the short term around 25 dollars (28.60 euros) a barrel," he told reporters after the accord was struck in Vienna.
He played down fears that the extra production could only benefit Saudi Arabia, the only OPEC country with substantial spare capacity, saying all countries had spare reserves. "Everybody is going to be able to meet their quotas," he said.
The Algerian minister, meanwhile, also reiterated a call for governments of consumer countries to cut taxes on oil products.
"We hope consumer countries will make a gesture of goodwill by decreasing taxes," he said.
He said that the 800,000-barrel-a-day accord had been struck after discussion on figures ranging from 500,000 barrels per day to one million barrels per day.
The new quotas will be reviewed by a meeting of the Organization of Petroleum Exporting Countries (OPEC) in Vienna on November 12, he said, pointing out that the date was five days after US elections and five days before an OPEC meeting in Riyadh with consumer countries.
"We will review the performance of the market to that date to take decisions if necessary," he said.—AFP.
©--Agence France Presse.
© 2000 Mena Report (www.menareport.com)
