Richardson sent to Gulf to work on Clinton's oil legacy

WASHINGTON — The Clinton administration is trying to hand over a legacy to its successor of stable oil prices.

With less than a week left to the end of his term, President Bill Clinton sent Energy Secretary Bill Richardson to the Gulf to maintain oil supplies. OPEC plans to meet later this week amid calls for sharp cuts in oil output.

Richardson held talks on Saturday with Saudi leaders in Riyad, Middle East Newsline reported. This included a meeting with Saudi Oil Minister Ali Nuaimi.

From Riyad, the secretary continues to the United Arab Emirates, Kuwait and Qatar. Officials said the United States wants a gradual reduction in oil output that amounts to half of that being demanded by OPEC members. In Riyad, Richardson held talks on the "world oil situation, and [to] continue his diplomatic efforts to increase world stocks, reduce market volatility, and improve the market situation," a U.S. embassy statement said.

OPEC members plan to meet on Wednesday in Vienna and many of its members are calling for cuts of up to 3 million barrels of oil per day. Algerian Energy Minister Chakib Khalil, who also chairs OPEC, said the cartel is expected to decide to cut oil output by between 1.5 and 2 million barrels per day.

Khalil said Qatar wants a cut of 2 million barrels and Saudi Arabia is calling for a 1.5 million barrel reduction. The minister said any cut — as part of a drive to maintain prices at $25 a barrel — would not be felt until the spring.

"The United States and Europe should not be worried, because there will be no shortage in the first quarter," Khalil told the London-based Al Hayat daily.

The OPEC meeting has already produced jitters in the oil market. On Friday, crude oil prices rose above $30 a barrel in New York.