Opec oil exporters took a tough stand yesterday against rival non-Opec producers that it accuses of taking a free ride while it shoulders the burden of propping up the price of oil.

In the opening salvo of what industry analysts said could turn into an oil price war, group ministers said they agreed to defer action on implementing new output curbs required to stop a slump in crude prices.

They said Opec was prepared to remove 1.5 million barrels per day, six per cent of its output, but would defer new limits until January 1, pending more negotiations with Russia and other non-aligned producers.

Opec Secretary-General Ali Rodriguez said, "We are ready to reduce production by 1.5 million barrels per day from the first of January with the cooperation of non-Opec by half a million barrels per day simultaneously, and that's our condition."

"We are trying to give them a generous offer and if I were in their shoes I would take this offer," said Qatari Oil Minister Abdullah Al Attiyah. "They would gain market stability and price."

Oil prices, down from $27.45 since September 11, slumped another 10 per cent with Brent finishing off $2.11 at $18.70 a barrel, a two-year low.

Strenuous efforts by Saudi Oil Minister Ali Al Naimi in the run-up to the Organisation of the Petroleum Exporting Countries meeting, aimed at drumming up non-Opec support, fell flat.

Russia, the world's second biggest exporter, offered only a token 30,000 bpd cut. Norway said it saw no need to cooperate for now. But Mexico had been believed ready to contribute in the event of an Opec announcement on lower output.

Opec looks in no mood to back down quickly from a stand that analysts said could cause a further fall in oil prices. It has set March 12 for its next conference.

"If Russia does not cooperate with Opec there will be no cuts now or in the future," said a senior Opec source. "Opec will not cut if Russia does not cut."

"This could drive the price below $15," said veteran Opec watcher Mehdi Varzi of Dresdner Kleinwort Wasserstein.

Analysts said the group looked set for a damaging price war with other producers that could mean good news on energy bills for consumers in petroleum importing nations that are battling to prevent recession.

"They're playing with fire and it looks like they're going to get their fingers burnt," said Gary Ross of New York consultancy PIRA Energy.

"The implication is that Opec will allow the price to go down to a level which begins to threaten the economics of upstream production in Russia," said Varzi of Dresdner. "People get very worried in Russia below $15 but I doubt Opec has the stomach for this battle."