- Title: AUSTRIA: OPEC AND NON-OPEC OIL PRODUCERS HOLD PRELIMINARY TALKS IN VIENNA
- Date: 30th March 1998
- Summary: VIENNA, AUSTRIA (MARCH 30, 1998) (RTV - ACCESS ALL) 1. TILT UP/SLV EXTERIOR OF INTERCONTINENTAL HOTEL WHERE MINISTERS ARE HAVING PRELIMINARY BILATERAL AND TRILATERAL MEETINGS AHEAD OF THE AFTERNOON CONFERENCE (2 SHOTS) 0.09 2. VARIOUS INTERIORS SHOWING DELEGATES TALKING/SEATED AT TABLES (3 SHOTS) 0.25 3. SV SECURITY/TRACK NIGERIAN ENERGY MINISTER CHIEF DAN ETETE LEAVING THE HOTEL SURROUNDED BY REPORTERS/ SV CAMERACREW (3 SHOTS) 0.45 4. SV SECRETARY GENERAL OF OPEC DR RILWANU LUKMAN WALKING TOWARDS CAR, SAYING THERE IS NO REASON WHY THE DEAL SHOULD EVAPORATE (ENGLISH) 0.56 5. SV SECURITY IN CAR 1.00 6. SV LIBYAN OIL MINISTER ABDALLA SALEM EL-BADRI EXITING HOTEL/LEAVING IN CAR (2 SHOTS) 1.26 7. SLV HOTEL EXTERIOR 1.29 8. WS INTERVIEW WITH STEVEN WYATT, MANAGING DIRECTOR U.S. PETROLEUM LTD. 1.36 9. SV WYATT SAYING HE IS OPTIMISTIC ABOUT THE DEAL; THAT IT SHOULD POSITIVELY AFFECT PRICES. ALSO THAT NON-OPEC COUNTRIES ARE AGREEING TO CUT PRODUCTION AND THAT DEAL SHOULD STICK EVEN IF IRAQ IS ALLOWED TO EXPORT (ENGLISH)/CUTAWAYS (5 SHOTS) 2.51 12. WS WYATT WITH REPORTER. 2.56 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 14th April 1998 13:00
- Keywords:
- Location: VIENNA, AUSTRIA
- City:
- Country: Austria
- Reuters ID: LVA5VQVVJJW2U3NKW0Q8B75ZQVY5
- Story Text: Oil cartel OPEC producers have held preliminary meetings ahead of a larger conference that is expected to approve production cuts and try to revive prices and to remove unwanted crude from glutted markets.
OPEC (Organisation of Petroleum Exporting Countries) ministers were conducting preliminary bilateral and trilateral meetings ahead of a larger conference on Monday (March 30) that is expected to successfully cut two per cent off global oil production.
OPEC which pumps 40 per cent of world output is expected to confirm later on Monday its part in output cuts which should slice two percent off global oil production.
One omen of a harmonious gathering came from Nigerian Oil Minister Dan Etete, who said he thought the meeting would finish on Monday.
Norway, the world's biggest exporter after Saudi Arabia, said it would cut output by about 100,000 barrels per day (bpd) as part of non-OPEC contributions to total pledged cuts of 1.5 million bpd.
News of the Norwegian decision helped boost the price of the strategic raw material.Brent crude in Asia rose to 15.43 U.S.dollars a barrel, eight cents better than Friday's close.
The price has jumped 2 U.S.dollars a barrel since the accord came to light and is 3.50 U.S.dollars up from lows seen earlier this month, taking Brent blend to 15.40 U.S.
dollars.
Steve Wyatt, managing director of U.S.Petroleum Ltd.
said he was optimistic about the deal and forcast that it should affect prices positively.
The pact agreed by Saudi Arabia, Venezuela and non-OPEC Mexico in Riyadh on March 22 has drawn support from all 11 OPEC members bar Iraq plus Oman, Egypt and Yemen.
Non-OPEC countries have pledged cuts of 270,000 bpd on top of OPEC's 1.25 million bpd reduction due to be approved by the producer club in its meeting starting at 1500 GMT.
A price slide of over 40 per cent since October chopped billions of dollars in revenue from OPEC exchequers, battered company share values and put a question mark over plans to explore in the world's remote regions.
But traders have said a sustainable rally would need hard evidence that producers were cutting exports.
The slump was caused by weak demand in cash-strapped Asian countries, a 10 percent rise in OPEC's 1998 production ceiling, a mild northern hemisphere winter and increased Iraqi exports.
Delegates said the single biggest hurdle to the meeting's success lay in uncertainty over plans by OPEC heavyweight Iran and economically-troubled Indonesia to lower their production.
Ripples of unease have already been felt over their stated intention to cut from their official OPEC output quotas, not from actual production as is assumed under the pact.
The issue is central because these countries can produce only markedly below quotas established last December and so their announced "reductions" would not affect crude supply.
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