more oil news

(Adds more quotes, details, background from paragraph 4)
MOSCOW, Nov 9 (Reuters) - Russian Prime Minister Mikhail Kasyanov said on
Friday that domestic firms were set to propose cutting crude exports as part
of efforts to support world oil prices and that the government agreed with
their idea.
Kasyanov was quoted by Russian news agencies as saying six or seven oil
companies would make such a proposal next week.
"We will agree the companies take this decision themselves and will take
it into consideration in the work of the government," he said.
Kasyanov added that the government "supported and could make corrections"
to proposals by oil firms.
He gave no time frame for any cuts.
His comments set crude markets jumping and came just hours after an
announcement that Saudi Oil Minister Ali al-Naimi would travel to Moscow on
Sunday in a bid to persuade Russia to support OPEC's efforts to stabilise
oil prices.
Russia is not a member of OPEC and has in the past largely ignored OPEC
output cuts.
Kasyanov said the oil companies themselves were to come to the government
with their initiative as the firms were suffering from weak prices for their
product.
He said consultations between the companies and the Energy Ministry were
currently going on and that he would then hold a meeting on the issue.
He said no special government order would be issued. "We will simply
agree with the rules of the game proposed by the oil companies," he was
quoted by RIA news agency as saying.
Russia's economy is extremely dependent on revenues from oil and other
key commodity exports, which have helped fuel bumper economic growth this
year and last.
((Moscow Newsroom, +7 095 941-8520 moscow.newsroom@reuters.com))

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Friday, 9 November 2001 08:46:00
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