- Title: AUSTRIA: OPEC: WORLD OIL PRICES PLUNGE BY ALMOST 15 PERCENT.
- Date: 25th September 2001
- Summary: VIENNA, AUSTRIA (SEPTEMBER 24, 2001) (REUTERS - ACCESS ALL) 1. GV: EXTERIOR ANA GRAND HOTEL 0.04 2. GV/PAN/MV: KUWAIT OIL MINISTER ADEL AL-SUBAIH ARRIVING, GETTING OUT OF CAR/ MEDIA (2 SHOTS) 0.16 3. MCU: SOUNDBITE (English) KUWAIT OIL MINISTER ADEL AL-SUBAIH: "We understand the situation with the world economy and we will be supportive". 0.38 4. CU: KUWAIT OIL MINISTER SURROUNDED BY JOURNALISTS IN HOTEL LOBBY 5. SOUNDBITE (English) KUWAIT OIL MINISTER ADELAL-SUBAIH: "Kuwait will be comfortable with the price on the lower half of the price band. Q: Can you confirm what the lower band is? MINISTERS ANSWER: 22-25 USD. 0.50 6. GV/MV/PAN: LIBYA OIL MINISTER AHMED ABDULKARIM ARRIVING (3 SHOTS) 1.07 7. CU: SOUNDBITE (English) LIBYA OIL MINISTER AHMED ABDULKARIM: "Opec will monitor the prices carefully. We are not really worried that this is going to be a major problem. It is just speculations because these days everybody is worried about what is going to happen in the world. So, the ministers will meet and will evaluate the market and you will see what we come up with. 1.30 8. MV: ALGERIA OIL MINISTER CHAKIB KHELIL AND OPEC PRESIDENT SURROUNDED BY JOURNALISTS 1.35 9. CU: SOUNDBITE (English) CHAKIB KHELIL: " We are seeing volatility, high volatility which is normal and we expect the prices to stabilize at their normal level. 1.50 10. TV: KHELIL SURROUNDED BY JOURNALISTS IN HOTEL LOBBY 1.55 11. MCU: VENEZUELA OIL MINISTER AND OPEC SECRETARY GENERAL ALI RODRIGUEZ ARRIVING, GETTING OUT OF CAR, SHAKING HANDS WITH SECURITY AND HOTEL DOORMAN 2.05 12. MV/PAN: ALI RODRIGUEZ WALKING DOWN HOTEL CORRIDOR SURROUNDED BY JOURNALISTS 2.15 13. GV/CU: CARS DRIVING IN CENTRAL VIENNA, PAN ONTO PETROL STATION/ PETROL PRICES DISPLAYED ON PETROL PUMP/ MAN PUTTING PETROL IN CAR, ANOTHER MAN PUTTING PETROL IN MOTORBIKE (3 SHOTS) 2.31 14. GV/MV/LV: EXTERIOR OPEC HEADQUARTERS/ MAN PUTTING FLAG ON ROOF (4 SHOTS) 2.45 15. GV: TRAFFIC 2.51 16. GV: TRAFFIC PASSING OPEC BUILDING 2.58 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 10th October 2001 13:00
- Location: VIENNA, AUSTRIA
- Country: Austria
- Reuters ID: LVA2WAXBM4UVGUDCDTGZ3G5XBGZX
- Story Text: Arriving in Vienna on Monday for a Wednesday OPEC
conference, oil ministers faced a big collapse of world oil
The prices plunged by nearly 15 percent on Monday to their
lowest level for nearly 18 months in the biggest
price collapse since the Gulf War over 10 years ago.
The drop was triggered by growing confidence that the
U.S. -led war on terrorism will not crimp precious Middle
Eastern oil exports to the West. Hands tied by political
loyalties after the September 11 suicide attacks, OPECs big
Gulf Arab producers now face the harsh realities of an
economic downturn that is stemming demand for their exports.
Fears of a faltering global economy also helped tip
prices decisively lower while oil producing cartel OPEC was
left reeling in the wake of fast falling oil markets.
Kuwait, a Gulf Arab state close to Washington, signalled
its willingness to assist in U.S. efforts to
bolster its failing economy with lower oil prices.
We understand the situation with the world economy and we
will be supportive, said Kuwaiti Oil Minister Adel
al-Subaih on his arrival in Vienna. He said Kuwait would be
comfortable with prices for a basket of OPEC crudes at $22-$25
a barrel -- at the bottom end of the groups long-standing
target range of $22-$28.
OPEC has yet to surrender that range, but oil prices
already are lower -- Mondays slump values OPEC crude at about
$20 -- and there appears little producers can do about it for
We are not really worried that this is going to be a major
problem. It is just speculations because everybody is worried
about what is going to happen in the world, Libya's OPEC
delegation Ahmed Abdulkarim told reporters upon arrival in
OPEC President and Algerian Energy and Mining Minister
Chakib Khelil said on Monday he was still aiming for a target
price of $25 for the groups basket.
We are seeing volatility, high volatility which is just
normal and we expect the prices to stabilize at their
normal level, he said.
A tottering U.S. economy and Washington's request for
help in a crisis makes it very difficult for OPEC this week to
consider more supply cuts to put the heat back under oil.
OPECs latest reduction took effect this month, lopping off a
million barrels daily to take limits for 10 OPEC nations with
quotas, excluding sanctions-bound Iraq, to 23. 2 million bpd.
On Wednesday it appears to have little choice but to
leave that policy in place and make a ritual call for
tighter adherence with existing output quotas. Further output
cuts now, politically difficult, would in any case make little
difference. Dealers are unlikely to take them seriously
because the group has yet to reduce supply anywhere near its
current output target.
The oil market has wrestled with a growing amount of news
in recent days as the twin threats of a global
recession and a protracted U.S. -led war on terrorism have
competed to dominate market psychology.
The prospects for global oil demand growth next year are
being steadily revised lower as economists calculate the
after-effects of the suicide air attacks on the United States.
But despite calming words from OPEC, many oil dealers
expect a volatile market as prices react to rapidly
changing events and rising tensions in the Middle East.
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