Algeria and Iran, two holdouts in an OPEC agreement to cut oil production in the second quarter to support world prices, said Wednesday they would respect a cartel decision to curb output by about 1 million barrels a day.
"This agreement is an agreement of all the organization," Algerian Mines and Industry Minister and OPEC President Sadek Boussana said. "Algeria is willing to implement it.""If cooperation does not materialize we are going to have a problem, " Iranian Petroleum Minister Gholam-reza Aghazadeh told a news conference. "We need mutual understanding."
Twelve of the 13 members of the Organization of Petroleum Exporting Countries held talks this week in Geneva. Ten of them agreed Tuesday to reduce daily output to 22.3 million barrels from the current 23.4 million barrels, cartel Secretary-General Subroto said.
Iraq did not send a delegation to the meeting.
Subroto said the actual reduction would be about 1 million barrels a day.
Earlier in the day, sources close to the negotiations said Saudi Arabia, the cartel's largest producer with a current output of about 8.3 million barrels a day, had agreed to cut its daily production by 300,000 barrels.
A statement by the 12 ministers said the decision to reduce output was intended to meet "the fundamental objective of OPEC of stabilizing the world oil market."