Natural-Gas Cuts Likely Off the Cartel Table

* username: rupertbu

Libya's top oil official said a meeting of natural-gas exporters Monday will reject an Algerian proposal for OPEC-style output cuts meant to ease the global oversupply of gas and stabilize weak spot prices for the fuel.

Shukri Ghanem, head of Libyan National Oil Co., said he didn't expect the Gas Exporting Countries' Forum, which meets in the Algerian resort of Oran on Monday, "to turn into a gas equivalent of OPEC, capable of cutting or increasing production." The forum is an 11-nation group that includes the world's biggest gas producers like Russia and Qatar.

In an interview, Mr. Ghanem, who is attending Monday's meeting, said there were "intrinsic differences" between oil and gas that would prevent the emergence of a cartel along the lines of the Organization of Petroleum Exporting Countries capable of taking coordinated action to shore up prices.