Russia, OPEC, Close to Oil Fight

Brent crude oil for December have slid to $17.99 a barrel on the International Petroleum Exchange in London, as observers fear the start of a fight between the Organization of Petroleum Exporting Countries (OPEC) and oil-producing countries that are not members, including Russia. Prices are down almost 50 percent in the past 12 months and have reached the lowest point in the last 28 months. OPEC pumps a third of the world's oil. Yesterday the organization refused a fourth cut in output this year unless non-members also lower shipments. Russia, currently the world's second-largest supplier after Saudi Arabia, has offered to cut production by 30,000 barrels a day. However, Saudi Oil Minister Ali al-Naimi called the reduction "extremely unreasonable." Al-Naimi was in Moscow earlier this week for talks with Russian officials. OPEC has agreed to lower production by 1.5 million barrels a day on Jan. 1, on condition that non-OPEC producers also cut 500,000 barrels a day. Another oil producer, Norway, is opposed to making production cuts. Russian oil producers have rejected OPEC's request. Yukos Oil major's Chief Executive Mikhail Khodorkovsky, who runs Russia's No. 2 oil company said on Thursday that `"OPEC's proposals are not acceptable for Russia."