- Title: LEBANON: OPEC AGREES TO RAISE OUTPUT OF OIL BY TWO MILLION BARRELS A DAY
- Date: 3rd June 2004
- Summary: (U6) BEIRUT, LEBANON (JUNE 3, 2004) (REUTERS) 1. WIDE OF PRESIDENT OF THE CONFERENCE, INDONESIAN MINISTER OF ENERGY AND MINERAL RESOURCES PURNOMO YUSGIANTORO, AND OPEC HEAD OF PR AND INFORMATION DEPARTMENT OMAR IBRAHIM AT NEWS CONFERENCE 0.08 2. WIDE OF REPORTERS AT NEWS CONFERENCE 0.12 3. SCU (SOUNDBITE) (English) OPEC HEAD OF PR AND INFORMATION DEPARTMENT OMAR IBRAHIM, SAYING: "The conference decided to increase the OPEC production ceiling, excluding Iraq, to 25.5 million barrels per day with effect from July 1, 2004 and 26 million barrels per day with effect from the 1st of August, 2004 in order to ensure adequate supply and give a clear signal to OPEC's commitment to market stability and to maintain prices at acceptable levels for both producers and consumers." 0.46 4. SCU JOURNALISTS 0.48 5. SCU (SOUNDBITE) (English) PRESIDENT OF THE CONFERENCE, INDONESIAN MINISTER OF ENERGY AND MINERAL RESOURCES PURNOMO YUSGIANTORO, SAYING "We decided to increase two million oil barrel per day but we know that the season starting soon, the summer season, so we decided to increase also five hundred thousand barrels by the day by August, by the month of August. However we are going to make our extraordinary meetings in Vienna on July 21st to evaluate the market, to see what is really the development in the market." 1.18 6. WIDE OF JOURNALISTS ATTENDING NEWS CONFERENCE 1.22 7. SCU (SOUNDBITE) (English) YUSGIANTORO, SAYING: "I cannot give you the guarantee that the oil prices are not going up. Opec tried to do the best we can by making a decision today." 1.32 8. SLV OF NEWS CONFERENCE 1.35 9. WIDE OF NEWS CONFERENCE 1.43 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 18th June 2004 13:00
- Keywords:
- Location: BEIRUT, LEBANON
- Country: Lebanon
- Reuters ID: LVADL1U75MOAIMSNXEGM6JKGOENU
- Story Text: OPEC lifts oil output.
OPEC agreed on Thursday (June 3, 2004) to raise output
by two million barrels a day, at the bottom end of
expectations, but made the impact it was hoping for as oil
prices sank. The pact among the 11-member Organisation of
the Petroleum Exporting Countries promises to add a further
500,000 barrels a day from August 1.
OPEC has been under enormous pressure from consumer
countries worried about the impact of inflated energy costs
on economic growth. For their own part producers do not
want prices at heights that put fuel demand at risk.
At first sight Thursday's deal lifting group limits by
eight percent, to 25.5 million barrels daily from July, 1
was a disappointment for those expecting OPEC to deliver
more immediately.
But oil prices fell on the view that OPEC's core Gulf
producers are serious about cheaper oil. By 1645 GMT U.S.
crude was off $1.63 a barrel at $38.33.
The United States applauded the agreement, saying
sufficient supplies were critical to sustaining economic
growth.
Delegates said the pact was a compromise between
Saudi Arabia and countries like Iran and Venezuela which
feared a Saudi proposal for an immediate 2.5 million
increment could trigger a big price collapse.
But the official details will make little difference to
actual supplies from the cartel that controls more than
half the world's oil exports.
That's because group output already is at official new
quota limits. Regardless of their new allocations, Saudi Arabia
and the United Arab Emirates confirmed to reporters they would
deliver about a million barrels daily of real extra oil in
June.
The two countries are OPEC's only members with much
spare capacity.
Saudi's Naimi reiterated that Riyadh was pumping 9.1
million barrels a day, an addition of about 700,000 bpd.
The UAE is adding 400,000 bpd.
Oil prices have been around the $40 mark for the past
three weeks, fuelled by accelerating demand growth and
worries about supply security in the Middle East.
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