AUSTRIA: OPEC OIL PRODUCERS POSTPONE DECISION ON RESPONSE TO IRAQ'S STOPPAGE OF U.N.-ADMINISTERED CRUDE SALES
Record ID:
344979
AUSTRIA: OPEC OIL PRODUCERS POSTPONE DECISION ON RESPONSE TO IRAQ'S STOPPAGE OF U.N.-ADMINISTERED CRUDE SALES
- Title: AUSTRIA: OPEC OIL PRODUCERS POSTPONE DECISION ON RESPONSE TO IRAQ'S STOPPAGE OF U.N.-ADMINISTERED CRUDE SALES
- Date: 7th June 2001
- Summary: VIENNA, AUSTRIA (JUNE 5, 2001) (REUTERS) 1. SLV EXTERIOR OPEC HQ, POLICEMAN WITH MACHINE GUN IN FRONT 0.03 2. MV UNITED ARAB EMIRATES OIL MINISTER OBAID BIN SAIF AL-NASSERI LEAVING BUILDING AFTER MONITORING COMMITTEE MEETING 0.10 3. SLV NIGERIA OIL MINISTER RILWANU LUKMAN LEAVING BUILDING, GETTING INTO CAR, CARS LEAVING (3 SHOTS) 0.33 4. MV HOTEL INTERCONTINENTAL, CROWD OF JOURNALISTS IN FRONT 0.38 5. MV MICHAEL ROTHMAN, SENIOR ENERGY MARKET SPECIALIST AT MERRYL LYNCH ARRIVING 0.42 6. SOUNDBITE (English) MICHAEL ROTHMAN, SENIOR ENERGY MARKET SPECIALIST AT MERRYL LYNCH "If total Iraqi oil exports were to cease on an indefinite period, basically it would mean that for the second half of the year OPEC production would have to rise by about 3,5 million barrels a day in order not to have inventories changed versus normal. That would essentially exhaust all of the OPEC production capacity that exists except for Saudi Arabia. They would be the only country with some capacity left. So, for the oil markets the idea they protract at disruption is significant because it would bring to light the fact that every OPEC country is going to be at their maximum export capacity." 1.20 7. MV JOURNALISTS 1.24 8. SOUNDBITE (English) MICHAEL ROTHMAN CONTINUES "Over the next thirty days we are actually expecting the price to stay in the top end of the band. The range that we've had is $27,5 to $31,75 basis WTI. At this point there is no reason, even knowing what we know about Iraq and assuming they'll be out for a month, why we would change that range. I suspect that if we start seeing signs of the physical tightness OPEC may choose to leak out extra barrels right away and calm fears or involve their price ban mechanism or simply agree informally that they are going to sell extra oil. In general oil prices over 30 USD a barrel are something that makes both the G7 countries and the OPEC nations uncomfortable. Nobody wants to see the current economic slowing exacerbated by oil price factor. So, we are not looking for a price rally over 30 USD on a sustainable basis." 2.14 9. SLV OPEC MINISTERS IN A MEETING AT OPEC HEADQUARTERS ROUNDTABLE 2.21 10. SOUNDBITE (ENGLISH) IRAQ'S OPEC REPRESENTATIVE TAHA HUMUD MUSA "OPEC has made their decision and we have no problem with that." 2.33 11. MV MORE OF ROUNDTABLE 2.37 12. SOUNDBITE (English) SAUDI ARABIA'S OIL MINISTER ALI AL NAIMI: "We want the stable market and we will keep it that way." 3.07 13. WIDE SHOT OF MEETING 3.20 14. SOUNDBITE (English) QATAR'S OIL MINISTER ABDULLAH AL ATTIYAH: "We are sending a very good message to the consumers. We are working closely with the market and will see what the reaction is in two to three weeks. There is a comfortable stocks of crude oil on the market." 3.55 15. MV LIBYAN DELEGATE SEATED 4.01 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 22nd June 2001 13:00
- Keywords:
- Location: VIENNA, AUSTRIA
- Country: Austria
- Reuters ID: LVA6F0T5GXC8X4Q4373HOZM7H9ZY
- Story Text: OPEC oil producers have decided to postpone a
decision on how to respond to Iraq's stoppage of its
U.N.-administered crude sales.
They agreed to leave output at 24.2 million barrels
daily for 10 members and to gather for an emergency
session on July 3, 2001.
Ministers said on Tuesday (June 5) at the OPEC
meeting in Vienna that ample crude inventories and stable
prices meant there was no need to panic over Baghdad's
decision to suspend deliveries under the United Nations
oil-for-food programme.
Oil traders took comfort from the decision and Brent crude
in London afternoon trade eased 14 cents to 29.12 U.S. dollars
(USD) a barrel.
The Organisation of the Petroleum Exporting Countries has
no easy answer to the conundrum set by Baghdad's sudden
withdrawal on Monday of nearly five percent of world oil
exports.
Iraq halted deliveries after the Security Council voted to
extend the U.N. oil-for-food programme by only a month,
instead of the normal six-month renewal.
Iraq's OPEC representative, Taha Humud Musa, said Iraq did
not have a problem with Tuesday's decision. "OPEC has made the
decision and we have no problem with that", he said.
"We are sending a good message to the consumers. We are
working closely with the market and we will see market's
reaction in 3-4 weeks, Qatar's Oil Minister Abdullah Al
Attiyah," told reporters.
Ministers were loath to jack up production too quickly for
fear that Baghdad might repeat the pattern seen during its
previous self-imposed outages -- and resume exports shortly.
Saudi Oil Minister Ali al-Naimi indicated that the cartel
would probably need to take action and add to production if
the Iraqi outage lasts for the month that Iraq is threatening.
"We want a stable market and we will keep it that way,"
NAimi said.
Analysts say that, with or without Iraq, OPEC will need
to raise production sometime soon to meet rising demand as
refiners build stocks for winter.
"Over the next 30 days we are actually expecting the price
to stay in the top end of the band. The range that we've had
is 27,5 to 31,75 USD basis WTI. At this point there is no
reason, even knowing what we know about Iraq and assuming
they'll be out for a month, why we would change that range. I
suspect that if we start seeing signs of the physical
tightness OPEC may choose to leak out extra barrels right away
and calm fears or involve their price ban mechanism or simply
agree informally that they are going to sell extra oil. In
general oil prices over 30 USD a barrel are something that
makes both the G7 countries and the OPEC nations
uncomfortable. Nobody wants to see the current economic
slowing exacerbated by oil price factor. So, we are not
looking for a price rally over 30 USD on a sustainable basis"
said Michael Rothman , senior energy specialist at Merryl
Lynch.
Iraq analysts said Baghdad had moved quickly to stop oil
sales in a bid to influence debate at the United Nations over
a revised package of sanctions.
An Anglo-U.S. proposal would lift restrictions on civilian
imports to Iraq but crack down on oil, smuggled across the
Iraqi border, the main source of hard cash for President
Saddam Hussein's government.
Iraq is continuing to supply its neighbours with oil.
Turkey, Iraq and Jordan together receive some 300,000 barrels
a day at discounted prices, worth at least 1.5 billion USD a
year.
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