OPEC oil producers said on Thursday that Friday's ministerial meeting would focus on halting oversupply to bolster falling prices and that the cartel would have to reduce output quotas early next year. Ministers from Kuwait, the UAE, Libya, Venezuela and Algeria urged the group to cut back on excess supply that has pulled prices to four-month lows. Saudi Oil Minister Ali al-Naimi said he came to the meeting with an open mind. "I think we have to cut off all our overproduction," said Kuwait Oil Minister Sheikh Ahmad al-Fahd al-Sabah. "I think over the last six weeks the prices were a surprise for everybody." Producers fear rising inventories in consuming nations could further lower prices which have already dropped by $13, or nearly 25 percent from record highs in late October. The 10 OPEC members with quotas are pumping around a million barrels daily above the official 27 million ceiling. OPEC's second biggest producer Iran said OPEC was unlikely to cut its formal target at Friday's meeting but would need to do so for the second quarter when demand seasonally declines. Kuwait also called for a second quarter cut in quotas. OPEC is likely to meet again in late January or early February, OPEC officials said. U.S. crude was up 76 cents at $42.62 a barrel on Thursday. --SP 1934 Local Time 1634 GMT
