OPEC 'building towards oil supply cut'

DUBAI, United Arab Emirates -- Momentum is building within the Organization of Petroleum Exporting Countries for a supply cut of between 700,000 to one million barrels per day, a Gulf source told Reuters Tuesday.

The timing for the reduction has not been decided but will likely be well before OPEC's next scheduled meeting in Vienna on November 14.

OPEC's 11 members -- Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the UAE and Venezuela -- between them produce about 40 percent of the world's oil and hold more than 77 percent of the world's proven oil reserves.

"There is a movement (in OPEC) for a cut," the source told Reuters, adding that oil ministers were in the midst of consultations.

"Consensus is starting to build for a reduction of between 700,000 barrels per day to one million bpd," he said.

"There are some who want to cut now and others who want to wait until the U.S. retaliation against Afghanistan is over," he said.

There is also no agreement yet on whether to involve key non-OPEC producers in any output action, the source said.

Reuters contributed to this report.