By Mark Shenk Dec. 17 (Bloomberg) -- Crude oil was little changed in New York amid speculation that a record OPEC production cut won’t revive prices that have collapsed $100 in five months because of lower demand. The group will trim output by 2 million barrels a day at the beginning of next year, Saudi Arabian Oil Minister Ali al- Naimi said before a meeting today. Russia and Azerbaijan said they may join OPEC in reducing supply as the recession slashes global energy consumption. “The cut hasn’t been a surprise to anyone,” said Rick Mueller, director of oil markets at Energy Security Analysis Inc. in Wakefield, Massachusetts. “They are chasing a smaller and smaller market, which is very challenging.” Crude oil for January delivery fell 1 cent to $43.59 a barrel at 10:10 a.m. on the New York Mercantile Exchange. Prices have tumbled 70 percent from a record $147.27 on July 11. The Organization of Petroleum Exporting Countries’ rate of compliance with a previous output cut is more than 85 percent, al-Naimi told reporters today in Oran, Algeria, before the ministerial meeting that will decide production quotas. “Now people will be focused on implementation, which is always tough for OPEC,” said Michael Lynch, president of Strategic Energy & Economic Research, in Winchester, Massachusetts. “It doesn’t help that there are a lot of tankers out on the ocean.” Oil companies booked 25 supertankers to store crude, enough to supply France for almost a month. The supertankers, equal to about 5 percent of the global fleet, can carry as much as 50 million barrels. The ships may not all be fully loaded, Jens Martin Jensen, interim chief executive officer of Frontline Ltd.’s management unit, said yesterday. Russian Cuts Russia, the largest non-OPEC producer, reduced oil output by 350,000 barrels a day in November and may trim further as market conditions require, Deputy Prime Minister Igor Sechin said at the meeting. Azerbaijan is willing to contribute a supply cut of as much as 300,000 barrels a day, Energy Minister Natig Aliyev said in Oran. “OPEC has to be careful to not overplay their hand in emphasizing any cooperation from Russia if it happens,” Mike Wittner, head of oil research at Societe Generale SA in London, said in a Bloomberg Television interview. “Russian production is going to fall next year anyway by at least 200,000 barrels a day just because of decline rates and lack of investment.” U.S. crude-oil inventories rose 11 percent between Sept. 19 and Dec. 5 as the recession crimped demand, according to Energy Department figures. Stockpiles probably rose 600,000 barrels last week, according to the median of 11 responses in a Bloomberg News survey conducted before the department releases a weekly supply report today at 10:35 a.m. in Washington. Brent crude oil for February settlement increased $1.10, or 2.4 percent, to $47.75 a barrel on London’s ICE Futures Europe exchange. To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net.

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