GENEVA OPEC oil ministers yesterday moved toward a majorityagreement - excluding Iraq - to cut the cartel's production by 7.23percent and to raise oil prices to $18 a barrel.
Although many officials from the Organization of PetroleumExporting Countries said approval of the plan was likely, cartelleaders delayed a final decision until this morning. That's when theministers will try to resolve a dispute between Persian Gulf Warenemies Iraq and Iran, delegates said.
Ministerial sources said 12 of OPEC's 13 member nations hadagreed to lower production, with Iraq the only holdout. The plan wasa compromise offered by Saudi Arabia to boost oil prices $3 to $4 perbarrel over current levels and limit production to 15.8 millionbarrels per day.
The delegates said OPEC has given Iraq 30 days to accept itstheoretical quota of 1.6 million barrels a day under the newagreement. Iran is insisting that this deadline be mentioned in thefinal communique.
Sources said Iraq has served notice it will not honor the quotabecause it is less than Iran's new daily quota of 2.2 millionbarrels. The meeting has stalled because Iraq has insisted it beallowed to produce as much oil as Iran.
Ministerial sources said OPEC has agreed that smaller producerswill cut back by only 5 percent and some larger members by as much as10 percent.
Delegates said Saudi Arabia, OPEC's principal producer, mightrein in its production by up to 10 percent.
OPEC sources said the new production ceiling could be in effectfor as long as the first nine months of 1987.
OPEC's new $18-a-barrel fixed price will be an average for sevencrudes, with differentials of as much as $2.65 a barrel for variousgrades ranging from the cartel's heaviest oil to its best-qualitylight oil.
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