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Thursday, 7 March, 2002, 01:48 GMT
Oil output cuts 'threaten US recovery'
oil rig
Opec's output is at an 11-year low
Oil producers cartel Opec risks slowing down economic recovery in the United States unless its steps up oil production by 1 million barrels per day, a US energy agency has warned.

Opec has pushed through output cuts to bolster the price of crude oil and is pushing to extend them.

Its current output quota is at its lowest level since March 1991, analysts say.

Sticking to current output limits threatens economic revival not just in the US but globally, the US Energy Information Administration has warned.

"If this quota is observed, OPEC efforts to boost (oil) prices could result in prices well exceeding their target, just as the U.S. and world economies recover," the EIA said in its monthly Opec update.

It called on Opec to increase production in the second half of this year.

Opec Secretary General Ali Rodriguez has said he does not expect to see the cartel increase its output this year.

The warning comes days after Mr Rodriguez travelled to Moscow in a bid to persuade the Russian government, which is not an Opec member, to extend a cut in output.

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Erik Kreil, US Energy Information Administration
"It doesn't make sense for the market"
See also:

04 Mar 02 | Business
Russia defies Opec pressure
11 Feb 02 | Business
Russia hints at oil production rise
18 Jan 02 | Business
Opec's grip on oil market weakens
28 Dec 01 | Business
Opec cuts exports to boost prices
05 Dec 01 | Business
Russia cut prompts oil price surge
04 Dec 01 | Europe
Russia on Opec collision course
15 Nov 01 | Business
Russia defies Opec oil cartel
26 Nov 01 | Media reports
Press questions Russia's oil policy
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