- Title: AUSTRIA: OPEC OIL MINISTERS GATHER UNDER PRESSURE TO CONTROL RISING PRICES
- Date: 22nd June 2000
- Summary: VIENNA, AUSTRIA, JUNE 20, 2000 (REUTERS) 1. SLV JOURNALISTS WAITING OUTSIDE ANNA GRANDE HOTEL IN VIENNA 0.05 2. SCU ARRIVAL OF SAUDI ARABIAN OIL MINISTER ALI I NAIMI (2 SHOTS) 0.29 3. SCU POLICEWOMAN ON DUTY OUTSIDE THE HOTEL 0.34 4. SCU ARRIVAL OF KUWAITI OIL MINISTER SHEIKH SAUD NASSER AL-SABAH (3 SHOTS) 1.09 5. MV MICHAEL ROTHMAN, DIRECTOR OF ENERGY RESEARCH AT MERRILL LYNCH, WALKING 1.14 6. (SOUNDBITE) (English) MICHAEL ROTHMAN, DIRECTOR OF ENERGY RESEARCH AT MERRILL LYNCH, SAYING "The understanding that was reached back in March was that if prices got too high, too high was deemed as being 30 dollars a barrel for WTI (West Texas Intermediate), they would respond by adding more supply and there was an aggreement signed by all the ministers to iniciate a half-a-million barrel production response if indeed prices average over a certain level. Frankly, that mechanism did not take hold, it doesnt ignore the fact that prices are at a level that both the OPEC and the G-7 nations are uncomfortable with and this is in fact why the timing of the meeting is fortuitous." 1.46 7. WIDE OF HOTEL LOBBY 1.49 8. (SOUNDBITE) (English) MICHAEL ROTHMAN, DIRECTOR OF ENERGY RESEARCH AT MERRILL LYNCH, SAYING "OPEC's job, so to speak, is to defend a growing price range, the intention is honorable, it is a good intention, but its not going to aleviate what is happening with motor fuel." 2.02 9. SCU ARRIVAL OF IRANIAN OIL MINISTER BIJAN NAMDAR ZANGENEH (3 SHOTS) 2.45 10. SLV EXTERIOR OF OPEC BUILDING (2 SHOTS) 2.57 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 7th July 2000 13:00
- Location: VIENNA, AUSTRIA
- Country: Austria
- Reuters ID: LVADG6A8I4O7PBEA091BUH5G9QSR
- Story Text: Opec oil ministers were gathering in Vienna on Tuesday
under pressure to raise exports for the second time this year
to control rising crude prices.
Some in the Organisation of the Petroleum Exporting
Countries, that meets on Wednesday, favour an output rise in
the region of 900,000 barrels a day from July
Top exporter Saudi Arabia believes an increase of
that size is needed to bring prices, recently over $30 a
barrel, down to the $25 level that would satisfy both
producers and major importers like the United States.
Rising energy costs have forced interests rates higher in
the United States and Europe as central banks try to keep
inflation under control.
If OPEC opts to add 900,000 bdp of supply for 10 OPEC
members, production would rise nearly 3.5 percent from quotas
now standing at a combined 24.7 million barrels daily.
A seven percent OPEC increase in March failed to keep
rising prices under control but some in OPEC still need
convincing that more oil now will not send prices tumbling.
Venezuela and Iran appear to prefer that incremental
supply be restricted this time to nearer 500,000 bpd. That is
the volume that would have been released two weeks ago had
OPEC chosen to implement the price stability mechanism it set
up in March.
There is a reluctance among some in OPEC to sanction a big
increment because, already producing to capacity, they would
be unable to take advantage of higher quotas.
Industry observers say only Saudi Arabia and its Gulf
allies Kuwait and the United Arab Emirates hold significant
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