AUSTRIA: OPEC PRODUCERS AGREE TO KEEP OIL OUTPUT LIMITS UNCHANGED AS RESUMPTION OF IRAQ'S U.N.-SUPERVISED CRUDE EXPORTS APPEAR IMMINENT

Record ID: 344848

  • Title: AUSTRIA: OPEC PRODUCERS AGREE TO KEEP OIL OUTPUT LIMITS UNCHANGED AS RESUMPTION OF IRAQ'S U.N.-SUPERVISED CRUDE EXPORTS APPEAR IMMINENT
  • Date: 4th July 2001
  • Summary: (U7)VIENNA, AUSTRIA (JULY 3, 2001) (REUTERS) 1. SLV EXTERIOR OPEC BUILDING; SCU OPEC SIGN; EXTERIOR OPEC (3 SHOTS) 0.18 2. SLV DELEGATES AROUND TABLE (2 SHOTS) 0.34 3. OPEC PRESIDENT, ALGERIAN MINISTER OF ENERGY AND MINES, CHAKIB KHELIL, TALKING; DELEGATES LISTENING (4 SHOTS) 1.19 4. (SOUNDBITE) (English) OPEC PRESIDENT, ALGERIAN MINISTER OF ENERGY AND MINES, CHAKIB KHELIL, SAYING "Cutting production and there was a general consensus on not increasing production at this time. Taking into account that the stocks were high and crude and petroleum oil products. Taking into account the weakening of prices although they could be only changes for this period, you know, maybe they might strengthen again. And also the fact that we have a lower growth in the US (United States) and Europe and consequently there is probably a lot of uncertainty. And what do you do when there is uncertainty? Well, lets wait till we see things better and then we make the right decision. So, that I think is a wise decision we have made this time and we hope that in September we will have a better analysis of the situation, especially that Iraq would have been contributing at that time and we would see better what the demand may be in the fourth quarter and especially that people at that time would start stocking for the winter time in the US." 2.36 5. SCU DELEGATE LISTENING 2.43 6. (SOUNDBITE) (English) KHELIL, SAYING "And we discussed mainly whether the Iraqi production will come into the world market or not and the general consensus I think is that they will and we are waiting for the formal official decision of the security council which should be coming at any time but we are working on the basis that they will come, they will come into the market." 3.09 7. SCU IRANIAN DELEGATES LISTENING; SCU SAUDI DELEGATE LISTENING (2 SHOTS) 3.22 8. (SOUNDBITE) (English) LIBYAN DELEGATE, CHAIRMAN OF NATIONAL OIL CORPORATION, AHMED ABDULKARIM AHMED, SAYING: "The Iraqi will resume production and it is going to be more pressure on the oil markets so the prices will slide down. That is the situation of the Iraqi case, if it comes. 3.41 13. SLV MORE OF DELEGATES AT MEETING 3.52 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 19th July 2001 13:00
  • Keywords:
  • Location: VIENNA, AUSTRIA
  • Country: Austria
  • Reuters ID: LVAC5ANDUFTTZTC315H06BFFP2SA
  • Story Text: OPEC producers have agreed to keep oil output limits
    unchanged as expectations rose for an imminent resumption of
    Iraq's U.N.-supervised crude exports.

    The Organisation of the Petroleum Exporting Countries
    (OPEC) left output for 10 members at 24.2 million barrels a
    day on Tuesday (July 3), keeping in place the supply
    restrictions it set earlier this year.

    OPEC is struggling to defend prices at its $25 a barrel
    target ahead of the likely resumption of substantial Iraqi
    supplies and because of a global economic downturn that is
    eating into oil demand.

    "We took account of the situation in the market which is
    well supplied. Stocks are at a very good level relative to
    last year," said OPEC President Chakib Khelil.

    Saudi Oil Minister Ali al-Naimi said the cartel was
    prepared to rein in supply again if the return of Iraqi oil
    proved too much of a burden for prices.

    London Brent blend eased 28 cents to $25.37 a barrel taking
    losses to more than $4 a barrel in the space of a month.

    Iraq is thought likely to lift a self-imposed block on its
    oil sales after a United Nations vote on Tuesday which looked
    set to renew existing measures against Baghdad, including an
    oil-for-food exchange.

    Faced by the threat of a Russian veto, the U.S. and
    Britain on Monday (July 2) abandoned efforts aimed at
    overhauling the 11-year-old Gulf War embargo.

    That would appear to meet Iraq's conditions for a
    resumption of its two million barrels daily, although a draft
    resolution contained a reference to sanctions reforms. Baghdad
    stopped exports in early June in protest at the plans.

    Iraq's government was waiting for the vote to announce its
    response but an Iraqi oil official in Vienna said Baghdad was
    likely to seriously consider resuming exports.

    Previously expecting that it would have to compensate for
    the Iraqi stoppage, OPEC found it had no option but to
    maintain production unchanged to keep prices in its $22-$28
    target.

    OPEC ministers are hoping that the return of Iraqi
    deliveries will not cause any further decline in oil prices.


  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2015. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register