MOSCOW - The secretary general of OPEC, in Moscow for talks with Russian officials, said Tuesday that he would not ask Russia for oil production cuts as world prices fall.
But Abdullah al-Badri also indicated the cartel would be looking for help from nonmember countries.
"OPEC will try to balance the market, but maybe OPEC alone will not be able to do it," he told reporters.
It was unclear what al-Badri would be seeking in his talks with Russian officials including Energy Minister Sergei Shmatko, but strategies could involve asking Russia not to poach OPEC's customers if the cartel announces a production cut as expected at an extraordinary meeting in Vienna on Friday.
"We can talk to each other and see how we can cooperate and help each other," al-Badri said.
Russia, which produces around 11 percent of the world's oil, could be eager to seek new customers to try to shore up its suffering economy. OPEC output is estimated at about 31.5 million barrels a day--about 40 percent of daily world demand.
Russia, the largest oil producer outside of OPEC, has seen its stock markets battered in recent weeks on the back of deepening fears of a global recession and plunging oil prices. The price of oil has more than halved since peaking at $147; Russia balances its budget on the assumption of oil selling for at least $70 a barrel.
Ahead of al-Badri's arrival, analysts had said Russia was unlikely to agree to coordinated production cuts, given that it already is battling with falling output as West Siberian oil fields mature. Oil exports, according to figures from the Troika Dialog investment bank, fell by nearly 6 percent between January and August compared to a year ago.
"The Russian authorities are eager to cooperate with countries or organizations able to support high oil prices, because it's in their interests," said Valery Nesterov, an oil analyst at Troika Dialog.
But he added that there is "no way" for Russia to cut oil output voluntarily in the face of declining production.
Russian oil majors also have noted that it is difficult for them to turn production on and off, given the harsh geological conditions under which they operate. Many fields are located in inaccessible parts of Siberia, and restarting a well can be both a costly and lengthy process.
Instead, said analysts, OPEC may be seeking support from Russia as it mulls substantial cuts. These may include guarantees from Russia, which has become increasingly isolated politically from the West since its short war with Georgia in August, that it will not move in on traditional OPEC markets if the cartel cuts production.
