LIBYA yesterday said it was in favour of a production cut of more than one million barrels of oil per day ahead of a cartel meeting later this week.

The Organisation of Petroleum Exporting Countries (Opec) is due to hold a special meeting on Friday at its headquarters in Vienna to announce production cuts amid falling oil prices.

“A cut in production by one million barrels per day is not enough to re-establish equilibrium on the market,” Libyan oil minister Shukri Ghanem said , adding that he was opposed to production cuts in stages.

Earlier yesterday, Iran’s ambassador to Opec said that the cartel may agree to cut oil production in stages when it meets in Vienna.

“Different figures (for the size of cuts) are being talked about among Opec members,” Mohammad Ali Khatibi was quoted as saying.

Oil prices had reached a peak of 147 a barrel earlier this year but slumped below 70 last Thursday , dragged down by prospects for reduced demand in the face of a global economic slowdown .

Yesterday, o il prices rose by 2 on growing signs that Opec will announce production cuts at the Vienna meeting . — Sapa-AFP