AUSTRIA: OPEC PRODUCERS AGREE TO RESTRAIN OIL EXPORTS FOR THE SECOND TIME THIS YEAR

Record ID: 344973

  • Title: AUSTRIA: OPEC PRODUCERS AGREE TO RESTRAIN OIL EXPORTS FOR THE SECOND TIME THIS YEAR
  • Date: 16th March 2001
  • Summary: VIENNA, AUSTRIA (MARCH 16, 2001) (REUTERS ACCESS ALL) 1. SV EXTERIOR OPEC HEAD QUARTERS (FLAG AND LOGO) 0.02 2. SV/CU RIFLE/ MV SECURITY AROUND BUILDING (3 SHOTS) 0.22 4. MV SECRETARY GENERAL OPEC ALI RODRIGUEZ ARAQUE ARRIVING 0.29 5. MV MINISTER OF VENEZULEA SILVA TALDERON ARRIVING 0.38 6. MV SAUDI ARABIAN MINISTER OF PETROLEUM ALI AL NAIMI 0.44 7. MV MINISTER OF IRAN BIJAN ZANGANEH 0.47 8. MV MINISTER NIGERIA RILWANU LUKMAN 0.54 9. WIDE SHOT OF CONFERENCE HALL 0.58 10. SCU SOUNDBITE: (English) SEC GENERAL RODRIGUEZ SAYING: " Tomorrow morning you will have the final decision". 1.03 11. SCU MINISTER OF NIGERIA RILWANU LUKMAN TALKING ABOUT ECONOMY 1.21 12. REPEAT SEQ. 9 1.26 13. REPEAT SEQ. 10 1.31 14. LONGER VERSION OF SEQ. 11 2.10 12. VARIOUS OF OFFICIALS AROUND TABLE (8 SHOTS) 2.50 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 31st March 2001 13:00
  • Keywords:
  • Location: VIENNA, AUSTRIA
  • Country: Austria
  • Reuters ID: LVA4JMKWZFDFYMG7KAQHD49Z37TJ
  • Story Text: OPEC producers agreed on Friday to restrain oil exports
    for the second time this year, slicing about one million
    barrels a day -- near the upper end of expectations.

    The Organisation of the Petroleum Exporting Countries is
    hoping the cutbacks will restore prices for its oil to $25 a
    barrel, equivalent to about $27 for international benchmark
    Brent.



    Ministers said mounting concerns about failing
    petroleum demand because of a downturn in world economic
    growth had convinced them to take tough action on supply.

    "The context of this decision is uncertainty about the
    world economy this year, above all about the north American
    economy and its impact in Asia which we expected to be the
    main growth area," said OPEC Secretary-General Ali Rodriguez.

    Saudi Oil Minister Ali al-Naimi said a formal announcement
    confirming the exact size of the cutbacks would be made on
    Saturday.

    A million barrel-a-day reduction shaves limits for 10 OPEC
    members, excluding sanctions-bound Iraq, by four percent to
    24.2 million bpd.

    Analysts said the magnitude of new curbs would put the
    heat back under oil prices, off sharply from last year's
    10-year highs.

    London Brent blend gained 79 cents to $25.80 a barrel
    and U.S. light crude added 73 cents to $27.28 as dealers
    reacted to news of the deal.

    Prices had slumped earlier this week, knocking OPEC's
    reference basket of crudes down to $22.77, the bottom end of
    its preferred $22-$28 target.

    Iranian Oil Minister Bijan Zanganeh said non-OPEC
    suppliers Mexico, Angola and Oman would help support oil
    prices with export restraints of their own. There was no
    immediate confirmation from those countries, in attendance as
    observers.

    Small OPEC producers like Algeria and Indonesia had
    pressed for an even more aggressive cut.

    Moderate members, though, mindful not to choke off demand
    by hurting economic growth among importing nations, were
    worried about pushing prices too high.

    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.

    The European Commission, representing some of OPEC's major
    customers, called the cartel's efforts ill-timed given the
    signs of slowdown in economic growth.

    Oil importers fear a repeat of last year when the crude
    price spike sent energy bills rocketing, fueling inflation.

    Growing export levels from Iraq, outside OPEC's quota
    system under United Nations sanctions, are expected to dampen
    the impact of cartel restraints.

    Baghdad says it is planning to lift exports under a U.N.

    humanitarian programme towards two million bpd this month from
    1.3 million in February. It also has been smuggling increased
    volumes, in particular to Syria through a recently refurbished
    pipeline.


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