- Title: AUSTRIA: OPEC PRODUCERS AGREE TO KEEP OIL SUPPLIES ON HOLD
- Date: 6th December 2003
- Summary: (U6) VIENNA, AUSTRIA (DECEMBER 4, 2003) (REUTERS) 1. WIDE OF START OF PRESS CONFERENCE 2. (SOUNDBITE)(English) OPEC SPOKESMAN OMAR IBRAHIM SAYING "The Conference decided to to maintain currently agreed production level until further notice. In this connection, the Conference reiterated its call on all member countries to ensure strict compliance with agreed production levels." 3. MV REPORTERS AT PRESS CONFERENCE 4. (SOUNDBITE) (English) OPEC SPOKESMAN OMAR IBRAHIM SAYING "The conference also noted, with some concern, the decline in the purchasing power of the barrel as a result of current US dollar weakness vis-a-vis other major currencies. Moreover, taking into consideration the market outlook for 2004, in particular the second quarter, when the projected significant supply over-hang is expected to exert considerable pressure on oil prices, a situation requiring continuous monitoring and close assessment, the Conference reaffirmed its firm determination to take any measures, when deemed necessary, to maintain market stability and avoid price fluctuations. With this in mind, the Conference decided to convene an extraordinary meeting in Algiers, Algeria, on 10th February 2004 to consider adjustments in OPEC production." 5. WIDE OF REPORTERS AND CAMERAS 6. (SOUNDBITE) (English) QATARI OIL MINISTER NAD PRESIDENT OF OPEC ABDULLAH AL-ATTIYAH SAYING "We didn't discuss the new dollar or old dollar. What we discussed is that yes, we are concerned about the dollar value. We believe that we lost thirty five percent in the dollar fluctuation. But we never discussed switching to other currency. We never discussed this in this meeting. We will stick with 7. WIDE OF PRESS CONFERENCE FINISHING 2.34 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 21st December 2003 12:00
- Location: VIENNA, AUSTRIA
- Country: Austria
- Reuters ID: LVAC3KF49XV6G0AZKK244GZUZ3HN
- Story Text: OPEC producers agree to keep oil supplies on hold.
The Organisation of the Petroleum Exporting
Countries (OPEC) kept output limits unchanged at 24.5
million barrels a day and will meet again on February 10 in
Algiers, OPEC spokesman Omar Ibrahim told news conference
in Vienna on Thursday (December 4).
Ministers also scheduled talks for March 31 in Vienna
and June 3 in Beirut to leave markets in no doubt about
their intention to micro-manage prices.
"The Conference decided to to maintain currently agreed
production level until further notice. In this connection,
the Conference reiterated its call on all member countries
to ensure strict compliance with agreed production levels,"
Omar Ibrahim, the OPEC spokesman, told the news conference.
"The conference also noted, with some concern, the
decline in the purchasing power of the barrel as a result
of current US dollar weakness vis-a-vis other major
currencies," he added.
The group that controls half the world's crude trade
says it expects to cut deliveries in February. Producers
already appear to have a consensus on the need for tougher
restraints then as demand eases after the northern winter
and to make room for the recovery in post-war Iraqi exports.
Thursday's deal saw oil prices reverse some of this
weeks sharp gains as traders expressed relief that OPEC had
not opted for immediate curbs from January.
Leading OPEC power Saudi Arabia says it is pursuing a
higher oil price target to offset purchasing power lost to
the decline of the U.S. dollar against other major
Saudi Arabia's Oil Minister Ali al-Naimi said on
Wednesday (December 3) the dollar's slump justified current
International oil sales are dollar-denominated so the
feeble dollar has slashed OPEC's purchasing power for goods
and services from countries like Japan and the euro zone.
OPEC president, Qatari oil minister Abdullah al-Attiyah
said weakness of the U.S. dollar was discussed in a meeting
and there was concern, but OPEC did not discuss possible
switching to other currency.
A key U.S. ally, Riyadh has traditionally sought a
careful balance between maximising oil revenues and
ensuring demand remains strong among Western customers.
But for the United States rising crude prices could
mean extra heating oil and gasoline costs ahead of
President George W. Bush's bid for re-election.
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