March 12, 2009 / 6:58 PM / 10 years ago

UPDATE 2-Libya says would go along with another OPEC cut

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VIENNA, March 12 (Reuters) - Libya’s top OPEC official said on Thursday that oil markets remained oversupplied and the OPEC nation would go along with another output cut by the producer group if needed.

“If there is a need for a cut, we will go along with it,” Shokri Ghanem, chairman of Libya’s National Oil Corporation, told reporters upon arriving in Vienna ahead of OPEC’s meeting on March 15.

Ghanem said that while oil markets remained oversupplied, the producer group should first focus on complying with deep output cuts agreed last year as part of efforts to balance the market and support falling crude prices.

“We have to talk first about compliance. We have to get compliance as good as possible.”

Since last September, the Organization of the Petroleum Exporting Countries has agreed to curb output by a total of 4.2 million barrels per day (bpd), about 5 percent of daily world demand. [ID:nLA443746]

The producer group is widely expected to talk about stricter compliance with its existing output cuts rather than further reductions. [ID:nLB454095].

Saudi Arabia, the biggest and most influential of the 12-member group, is among those that believe it is too soon to agree new output targets, sources have said.

Other members, such as Iraq and Kuwait, have said an additional cut might be necessary, however. (Reporting by Simon Webb; Editing by Marguerita Choy)

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