AUSTRIA: OPEC APPROVE NEW PRODUCTION RESTRAINTS TO PREVENT OIL PRICES FALLING DURING A WORLD ECONOMIC SLOWDOWN

Record ID: 344905

  • Title: AUSTRIA: OPEC APPROVE NEW PRODUCTION RESTRAINTS TO PREVENT OIL PRICES FALLING DURING A WORLD ECONOMIC SLOWDOWN
  • Date: 17th March 2001
  • Summary: VIENNA, AUSTRIA (MARCH 17, 2001) (REUTERS - ACCESS ALL) 1. VARIOUS EXTERIORS OF OPEC BUILDING FROM ACROSS RIVER (3 SHOTS) 0.15 2. SVS SECURITY / WEAPON 0.22 3. MV ALGERIAN MINISTER DR CHAKIB KHELIL ARRIVING 0.31 4. MV VENEZUELAN MINISTER ALVARO SILVA CALEERON ARRIVING 0.40 5. MV KUWAITI MINISTER DR ADEL KHALID AL-SABEEH ARRIVING 0.48 6. MV IRANIAN MINISTER BIJAN NAMDAR ZANGENEH ARRIVING FROM CAR 1.06 7. MV PRESS / SAUDI MINISTER ALI NAIMI ARRIVING / PRESS (3 SHOTS) 1.26 8. VARIOUS OF PRESS CONFERENCE (3 SHOTS) 1.37 9. SV (SOUNDBITE) (English) FAROUK MUHAMMED, HEAD OF INFORMATION FOR OPEC, SAYING: "Having reviewed the current market situation the conference agreed to reduce production by one million dollars a day with effect from April 1, 2001." 1.49 10. MV CAMERAMAN AT PRESS CONFERENCE 1.52 11. SV (SOUNDBITE) (English) DR. ALI RODRIGUEZ -ARAQUE, GENERAL SECRETARY OF OPEC, SAYING: "The price between 22 and 28 dollars is a reasonable price. The impact in the inflation and other circumstances is very low, this level of price. According to many statements form different governments this is a good price for consumers." 2.25 12. VARIOUS OF PRESS CONFERENCE (2 SHOTS) 2.31 13. SV (SOUNDBITE) (English) DR. CHAKIB KHELIL, PRESIDENT OF OPEC, SAYING: "People always talk about revenues of OPEC. They never talk about revenues of industrialised countries. For every dollar that OPEC countries receive, industrialised countries receive four dollars. Revenues of these countries last year were one thousand billion dollars, four times revenues of OPEC countries. Before they show a finger they should probably reduce taxes in their own country." 3.10 14. VARIOUS OF PRESS CONFERENCE (2 SHOTS) 3.18 15. SCU (SOUNDBITE) (English) DR. CHAKIB KHELIL, SAYING: "We are just trying to stabilise the market and trying to stabilise the oil price that would be both to the benefit of consumers, producers and also investors and prevent the situation that happened in (19)86, in (19)98 or even in 2000 when oil prices went through the roof." 3.41 16. SV DR. CHAKIB KHELIL SPEAKING TO MEDIA 3.47 Initials GOOD SHOTS OF OPEC BUILDING Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 1st April 2001 13:00
  • Keywords:
  • Location: VIENNA, AUSTRIA
  • Country: Austria
  • Reuters ID: LVABSN196HBCFM9ERGLQBIJ8BEMS
  • Story Text: OPEC on Saturday approved new production restraints to
    prevent oil prices falling during a world economic slowdown.



    Farouk Muhammed, the head of information at OPEC said
    on Saturday (March 17), that the pact was effective from April
    1.

    Oil ministers ratified an agreement reducing output by
    one million barrels a day, four percent, to 24.2 million bpd.

    The Organisation of the Petroleum Exporting Countries is
    worried that demand growth for its petroleum will be dented by
    a downturn in world economic fortunes.

    OPEC decided to restrain output for the second time this
    year to support oil prices near $25 a barrel for a basket of
    cartel crudes.

    Speaking after the meeting Dr. Chakib Khelil, the
    president of OPEC said that OPEC was trying to stabilise the
    market.

    "(We are) trying to stabilise the oil price and that would
    be of benefit both to consumers, producers and also investors
    and prevent the situation that happened in (19)86, in (19)98
    or even in 2000 when oil prices went through the roof.

    Dr. Chakib Khelil also warned industrialised countries to
    consider reducing taxes before talking about the revenues of
    OPEC.

    OPEC already had curtailed supplies by 1.5 million bpd in
    January to counter a downturn in demand at the end of the
    northern hemisphere winter.

    Now it frets that growth markets in Asia have been hurt
    by the side-effects of slowdown in the United States.

    Incremental global petroleum consumption this year is expected
    to record just 1.4 million bpd, less than two percent, to 76.8
    million.

    OPEC meets again on June 5-6.




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