ABUJA, 14 December 2006 — Minister of Petroleum and Mineral Resources Ali Al-Naimi said yesterday that OPEC had “a little more work to make the market even more stable,” a hint the oil exporters’ group needed to reduce its output further.

His comments could mean a further cut in OPEC production target, currently at 26.3 million barrels per day, or greater compliance from OPEC members.

“The fundamentals of the market are much better than they were in October and I think the market is moving toward better stability. We probably have a little more work to make the market even more stable,” he said as he arrived here.

The Organization of Petroleum Exporting Countries, whose members regulate their oil exports to control the price of oil, took a decision in Qatar in October to cut their output by 1.2 million barrels per day.

The cut has helped to lift prices since, but analysts believe that actual production has been cut by far less, with the real reduction estimated at between 500,000-800,000 barrels per day.

Venezuela backs a further reduction in OPEC production of 500,000 barrels per day, Venezuelan Energy Minister Rafael Ramirez said yesterday.

“Venezuela is calling for a cut in production of 500,000,” he told reporters as he arrived for a meeting of the organization today.

OPEC members have appeared uncertain in recent days about the need for another cut in the production target, with Nigeria, Algeria and Iran seemingly in favor of a further reduction. Libya has shown more reticence.

Analysts had suggested before the start of the meeting that the issue of overproduction and quota cheating would figure at the gathering.

“We made a good decision in Doha,” Al-Naimi said, referring to the decision to cut production at the OPEC meeting in the Qatari capital in October. He added: “I think the market is in much better situation than it was in October, but we need to do a little more.” The high level of oil stocks in OECD countries, the biggest oil consuming nations in the world, was one of the reasons given for falling oil prices in September and October.

Commenting on developments since October, Al-Naimi said: “Already 50 (million barrels) has been taken out of the market.”

In an implicit warning to OPEC ministers to think twice before cutting production further this week, the International Energy Agency said yesterday that oil prices would remain high in coming months.

The IEA said that “without doubt” the last production cut by OPEC, in November, would push up prices during the winter months when fuel is in heavy demand and against a background of risks for the world economy.

The agency said that it expected world demand to grow by 1.1 percent this year to 84.5 million barrels per day and by 1.7 percent next year to 85.9 million barrels per day. These figures were the same as those estimated last month.

However, the IEA said that a slight slowing of demand growth next year was possible owing to uncertainty about the course of the US economy.