Talks on cut in oil output to go ahead without representative from Iraq

MInisters from Opec will go ahead with an emergency meeting to debate a cut in output without a representative from Iraq.

Confusion reigned over who could represent Iraq's oil interests with the US military in control of the oilfields and rival Iraqi figures claiming to speak for the country.

US officials believe oil production of some 800,000 barrels per day from Iraq's northern oilfields, unscathed by the war, could resume in two to six weeks. A similar amount of crude could start pumping from southern oilfields in six to nine weeks.

The oil producers' cartel, which is made up of 10 oil exporting nations plus Iraq, called for the emergency meeting a fortnight ago after it emerged that the US was on track to achieve a swift military victory.

It is worried a resumption of exports from Iraq, combined with the evaporation of fears of an oil shortage and continued economic weakness would trigger fresh drops in prices. The price had fallen 30 per cent in a month, raising fears prices could head below $20 during the second quarter when demand will be at its weakest.

However, a call by Iran for a cut in production this week has triggered a rise in the price, which stayed above the psychological $30 mark in New York yesterday. US light crude was 18 cents lower at $30.37 a barrel. London's International Petroleum Exchange was closed for the Easter holiday.

Iran's oil minister Bijan Zanganeh said Opec must cut to below its output ceiling of 24.5 million barrels per day to keep oil prices from crashing and indicated that any output cut would be made after 1 May.

Iran, Algeria, Qatar, Venezuela and Indonesia have also called for a cut in output

The question of Iraq's representation at the Opec meeting on Thursday remained muddled. Jawdat al-Obeidi, a former Iraqi general who says he is deputy governor of post-war Baghdad, said he would lead a delegation.

But the US government does not recognise Mohammed Mohsen al-Zubaidi, the self-declared governor of Baghdad, and therefore his deputy cannot represent Iraq at Opec.

Last week an unnamed Opec source said the cartel had invited Saddam Hussein's oil minister Amir Muhammad Rashid al-Ubaydi. However, he is on the US list of the 55 most wanted Iraqis and thought unlikely to attend.

Mr Zanganeh said only a government recognised by the United Nations could represent Iraq at the Opec meeting, which is to take place in Vienna on Thursday. "The US administration cannot represent Iraq at Opec," he said.