AUSTRIA: OPEC OIL MINISTERS GATHER IN VIENNA TO DISCUSS SAUDI ARABIA'S PROPOSAL FOR A SHARP CUT IN OIL PRODUCTION

Record ID: 344896

  • Title: AUSTRIA: OPEC OIL MINISTERS GATHER IN VIENNA TO DISCUSS SAUDI ARABIA'S PROPOSAL FOR A SHARP CUT IN OIL PRODUCTION
  • Date: 11th December 2002
  • Summary: (W5) VIENNA, AUSTRIA (DECEMBER 11, 2002) (REUTERS - ACCESS ALL) 1. SV'S: SAUDI ARABIA'S OIL MINISTER, ALI NAIMI, GETTING OUT OF CAR IN FRONT OF VIENNA'S ANA GRAND HOTEL; ALI NAIMI ENTERING LIFT (2 SHOTS) 0.13 2. WS: EXTERIOR OF GRAND HOTEL 0.17 3. SV'S: LYBIA'S OIL MINISTER, ABDULHAFID MAHMOUD ZLITNI, ENTERING INTERCONTINENTAL HOTEL; SURROUNDED MY MEDIA ASKING QUESTIONS (2 SHOTS) 0.50 4. SV'S: UNITED ARAB EMIRATES OIL MINISTER, OBAID AL-NASSERI, GETTING OUT OF CAR SURROUNDED BY JOURNALISTS, ENTERING ANA GRAND HOTEL (2 SHOTS) 1.03 5. SLV: OIL ANALYST, RAAD ALKADIRI, OF PETROL FINANCE CO. TALKING TO OTHER OIL ANALYSTS IN HOTEL LOBBY 1.09 5. SCU: (SOUNDBITE) (English) ALKADIRI SAYING: "Because there is uncertainty about whether there will be a war in Iraq and what that will do to Iraqi supply, because there is uncertainty about how Venezuela is going to play out, how long the disruption in supply is going to last and what the eventual outcome of the political battles in Venezuela might be, all of that means that OPEC is potentially looking at losing three million barrels a day or more of supply for a period of time, and it is not sure when that will happen, it's not sure if that will happen all at the same time and it's not sure how long any of those disruptions will be." 1.47 6. SV; CHRISTMAS TREE IN HOTEL LOBBY 1.52 7. SCU: (SOUNDBITE) (English) ALKADIRI SAYING: "OPEC will want to signal it is still a very cohesive organisation. The last few months, in particular with this over production, has really left a certain feeling in the market that OPEC cohesion might be unravelling. So, OPEC will want to do things very quickly. They will probably want no longer than a one-day meeting. But, nonetheless, the discussions are going to be tough and, also, they have a number of very, very complicated issues." 2.18 8. SCU/WS/SV: EXTERIOR OF OPEC HEADQUARTERS AND NEARBY PETROL STATION (3 SHOTS) 2.35 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 26th December 2002 12:00
  • Keywords:
  • Location: VIENNA, AUSTRIA
  • Country: Austria
  • Reuters ID: LVAAOZOTFAMX2MUVJ025J68ATKF4
  • Story Text: OPEC oil ministers are gathering in Vienna for the
    Cartel's meeting in which they will have to discuss Saudi
    Arabia's proposal for a sharp cut in oil production to prevent
    a slump in crude prices.


    Saudi Arabia warned fellow oil producers belonging to
    the Organisation of the Petroleum Exporting Countries on
    Wednesday (December 11) to support its plan to rein in excess
    supplies, or risk an end to a three-year boom in oil prices.

    OPEC's leading power, Saudi, is proposing to restore
    output discipline by eliminating over-production and
    increasing formal supply targets, made irrelevant in recent
    months by chronic quota-busting.

    Saudi Oil Minister Ali al-Naimi was reported to say that,
    if OPEC did not adopt the proposal at a meeting on Thursday
    (December 12), oil prices could slump to bellow $20 a barrel.

    OPEC now appears more worried about a possible glut next
    year than the threat of the price rise that could come if the
    United States launches an assault on Iraq.

    Aside from Iraq worries, oil prices are finding support
    from a crippling oil strike in Venezuela, OPEC's third biggest
    supplier, that moved into a 10th day on Wednesday.

    "Because there is uncertainty about whether there will be
    a war in Iraq, and what that will do to Iraqi supply, because
    there is uncertainty about how Venezuela is going to play out,
    how long the disruption in supply is going to last and what
    the eventual outcome of the political battles in Venezuela
    might be, all of that means that OPEC is potentially looking
    at losing three million barrels a day or more of supply for a
    period of time, and it is not sure when that will happen, it's
    not sure if that will happen all at the same time, and it's
    not sure how long any of those disruptions will be", Raad
    Alkadiri, oil analyst of Washington based company Petrol
    Finance told Reuters Television on Wednesday.

    Saudi is hoping that OPEC will agree to cut back
    quota-busting by 1.5-2.0 million barrels per day from recent
    output for 10 producers estimated by OPEC headquarters at
    24.52 million bpd.

    Riyadh also wants the producer group to raise formal
    limits by 1.0-1.5 million bpd to set a realistic new output
    target for member countries to reduce their overproduction.

    Projections from the Paris-based International Energy
    Agency released on Wednesday show that current OPEC output
    will outstrip world demand next year by 1.8 million barrels a
    day on the 77 million bpd world market.

    The agency, adviser on energy to 26 industrialised
    nations, is opposed to a reduction now in OPEC output.


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