Nicosia: The Ministers of the Organisation of Petroleum Exporting Countries (OPEC), at their meeting in Doha next week, will have to decide on reducing oil production by about three million barrels a day if they wish to maintain the prices at their preferred price band of $22-$28.

The members of the oil cartel are believed to be producing more than 27 million barrels a day, which has helped rebuild global stocks of about 200 million barrels.

Although oil ministers had decided in January to cut output by 1.5 million barrels a day, this decision was never implemented as several members did not comply faithfully with the quotas allocated to them. Instead, they increased production.

As Iraq is expected this month to resume oil production, by at least 1.5 million barrels, which could easily double as infrastructure is repaired and more wells are added, OPEC will have to ignore calls, particularly from Algeria and Nigeria, to increase their quotas.

The cut of three million barrels a day will have to take effect as from July and OPEC members will have to stick to the revised quotas. Otherwise industry experts expect a drop in oil prices.

ANI