AUSTRIA: OPEC MEMBERS TO CUT OIL PRODUCTION CUT BY 1.5 MILLION BARRELS PER DAY FROM JANUARY 1, 2002 BUT ONLY IF NON-OPEC PRODUCERS SHAVE OF 500,000 bpd

Record ID: 344907

  • Title: AUSTRIA: OPEC MEMBERS TO CUT OIL PRODUCTION CUT BY 1.5 MILLION BARRELS PER DAY FROM JANUARY 1, 2002 BUT ONLY IF NON-OPEC PRODUCERS SHAVE OF 500,000 bpd
  • Date: 14th November 2001
  • Summary: (W7)VIENNA, AUSTRIA (NOVEMBER 14, 2001) (REUTERS - ACCESS ALL) (NIGHT SHOTS) 1. WS/SVEXTERIOR OF OPEC HEADQUARTERS WITH GUARDS IN FRONT (2 SHOTS) 0.12 2. SV: IRAQ'S OIL MINISTER, AMIR MUHAMMED RASHEED, ARRIVING FOR CONFERENCE 0.19 3. SCU: NEWS CAMERAS 0.25 4. SV: SAUDI ARABIA'S OIL MINISTER, ALI NAIMI, ARRIVES FOR CONFERENCE, ENTERS OPEC HEADQUARTERS 0.31 5. PAN: UNITED ARAB EMIRATES OIL MINISTER, OBAID BIN SAID AL-NASSERI, ARRIVES FOR CONFERENCE 0.38 6. WIDE OF CONFERENCE, DELEGATIONS SEATED AROUND TABLE 0.45 7. VARIOUS OF DELEGATES ROUND TABLE (5 SHOTS) 1.22 8. LV: JOURNALISTS ENTERING CONFERENCE ROOM 1.27 9. SV: (SOUNDBITE) (English) KUWAIT'S OIL MINISTER, ADEL AL-SUBAH, TALKING TO JOURNALISTS, JOURNALIST ASKING (English): "So, all you are saying is that you will simply not cut if they do not cut?" ADEL AL-SUBAH ANSWERING: "Yes, exactly, exactly." JOURNALIST ASKING: "And you are prepared to live with the consequences of lower prices?" ADEL AL-SUBAH ANSWERING: "We do not like it, but we do not have a choice." 1.45 10. SV: (SOUNDBITE) (English) NIGERIA'S OIL MINISTER, RILWANU LUKMAN, SAYING: "We are asking them (non-OPEC oil producers) to contribute with 500 (barrels), which is 10 per cent of what we are thinking of cutting and we have only 30 per cent of the market, and they have 70 per cent of the market." 2.09 11. SV: DELEGATES 2.13 12. SCU: SOUNDBITE (English) UNITED ARAB EMIRATES OIL MINISTER, OBAID BIN SAID AL-NASSERI, SAYING: "If non-OPEC do not come along, this is going to be very difficult for everybody." 2.37 13. SLV: CROWD OF JOURNALISTS SURROUNDING MINISTERS 2.44 14. WIDE OF NEWS CONFERENCE 2.50 15. SV: SOUNDBITE (English) OPEC SPOKESMAN, FAROUK MUHAMMED, SAYING: "In this connection, and reiterating its call on other oil exporters to cooperate so as to minimise price volatility and insure market stability, the conference has decided to reduce an additional volume of 1.5 million barrels per day as of January 1, 2002, subject to non-OPEC produceres to cut their production." 3.18 16. WIDE OF NEWS CONFERENCE 3.23 17. SCU: SOUNDBITE (English) OIL ANALYST, WILLIAM EDWARDS, OF EDWARDS ENERGY CONSULTANTS SAYING: "I suspect the non-OPEC producers will be reluctant for this reason: OPEC is asking them to do a production cut roughly in magnitude to the amount of cheating that OPEC is currently doing. So, the non-OPEC countries will look at this as if OPEC is saying: 'decrease your production so we can cheat.' 3.44 18. BACK VIEW: ARMED GUARD STANDING IN FRONT OF OPEC HEADQUARTERS 3.51 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 29th November 2001 12:00
  • Keywords:
  • Location: VIENNA, AUSTRIA
  • Country: Austria
  • Reuters ID: LVACH93WX4JECQX5T237U83E76PQ
  • Story Text: The Organisation of the Petroleum Exporting Countries
    (OPEC), wrapping up a meeting in Vienna, agreed to cut
    production by 1.5 million barrels per day from January 1,
    but only if oil producers outside the Organisation shave off
    500,000 bpd.


    OPEC took a tough stand on Wednesday (November 14)
    against rival non-OPEC exporters that it accuses of taking a
    free ride while it shoulders the burden of propping up the
    price of oil.

    In the opening salvo of what industry analysts said could
    turn into an oil price war, Cartel ministers said they agreed
    to delay new output curbs required to stop a slump in crude
    prices.

    They said OPEC was prepared to remove 1.5 million barrels
    a day, six per cent of its production, but would defer
    implementing the lower limits until January 1, pending more
    negotiations with Russia and other non-aligned producers.

    Asked if OPEC will simply not cut production if non-OPEC
    producers do not come along, Kuwaiti oil minister Adel
    al-Subah said: "Yes, exactly. We do not like it, but we do not
    have a choice."
    Nigeria's Oil minister Rilwanu Lukman said."We are asking
    them (the non-OPEC producers) to contribute with 500 barrels
    which is 10 per cent of what we are thinking of cutting, and
    we have only 30 per cent of the market and they have 70 per
    cent of the market."
    Oil prices, down from $27.45 since September 11, slumped
    another 10 per cent with London Brent finishing off $2.11 at
    $18.70 a barrel, a two-year low.

    Strenuous efforts by Saudi Oil Minister Ali al-Naimi in
    the run-up to the OPEC meeting aimed at drumming up non-OPEC
    support, fell flat.

    Russia, the world's second biggest exporter, offered only
    a token 30,000 bpd cut. Norway said it saw no need to
    cooperate for now. But OPEC said it welcomed expected
    contributions from Mexico and Oman.

    But some analysts said non-OPEC producers may be reluctant
    to cooperate.

    "I suspect the non-OPEC producers will be reluctant for
    this reason: OPEC is asking them to do a production cut
    roughly in magnitude to the amount of cheating that OPEC is
    currently doing," William Edwards of Edwards Energy
    Consultants said.

    But the Cartel was in no mood to back down quickly from a
    stand that analysts said looked set for a damaging price war
    with rival producers but which could mean good news on energy
    bills for consumers in petroleum importing nations.

    OPEC has set March 12 for its next conference and has not
    made clear how ministers will judge when non-OPEC has met
    their target.


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