AUSTRIA: OPEC APPROVES DEAL TO RAISE WORLD CRUDE OIL SUPPLIES TO CONTROL RISING PRICES
Record ID:
344997
AUSTRIA: OPEC APPROVES DEAL TO RAISE WORLD CRUDE OIL SUPPLIES TO CONTROL RISING PRICES
- Title: AUSTRIA: OPEC APPROVES DEAL TO RAISE WORLD CRUDE OIL SUPPLIES TO CONTROL RISING PRICES
- Date: 22nd June 2000
- Summary: VIENNA, AUSTRIA (JUNE 21, 2000) (REUTERS) 1. SLV JOURNALISTS WAITING OUTSIDE BRISTOL HOTEL IN VIENNA 0.05 2. MV /SCU SAUDI ARABIAN OIL MINISTER ALI AL-NAIMI WALKING (2 SHOTS) 0.15 3. SCU QATAR OIL MINISTER ABDULLAH BIN HAMAD AL ATTIYAH WALKING 0.26 (SOUNDBITE) (English) QATAR OIL MINISTER ABDULLAH BIN HAMAD AL ATTIYAH SAYING: We are working very hard (on reaching an agreement). 0.39 4. SLV EXTERIOR OPEC BUILDING 0.45 5. SCU IRANIAN OIL MINISTER BIJAN NAMDAR ZANGENEH ARRIVING 0.52 6. SCU POLICEMEN GUARDING THE MEETING 0.59 7. SCU KUWAITI OIL MINISTER SHEIKH SAUD NASSER AL-SABAH ARRIVING 1.05 8. SLV CONFERENCE ROOM WHERE OPEC MEETING HELD CROWDED WITH MEDIA AND DELEGATES 1.10 9. (SOUNDBITE) (English) LIBYAN OIL MINISTER ABDALLA SALEM EL-BADRI SAYING: "We agreed on a mechanism. We will try to have twenty five dollars (USD) the price. 1.22 10. SCU JOURNALISTS GATHERING AROUND OIL MINISTERS 1.28 11. SCU KUWAITI MINISTER SHEIKH SAUD NASSER AL-SABAH SPEAKING WITH HIS ASSISTANT 1.36 12. MV SAUDI ARABIAN MINISTER ALI AL-NAIMI 1.40 13. SCU FACE OF ALI AL-NAIMI 1.47 14. (SOUNDBITE) (English) QATAR OIL MINISTER ABDULLAH BIN HAMAD AL ATTIYAH SAYING "I believe there is enough crude oil on the market, but also there are technical problems, there is a taxation problem and there should be in other countries trying to solve it from other parts." 1.59 15. SLV CONFERENCE ROOM WITH OPEC MINISTERS 2.04 16. SLV NEWS CONFERENCE/JOURNALISTS (2 SHOTS) 2.11 17. (SOUNDBITE) (English) OFFICIAL SPOKESMAN FOR OPEC FAROUKH MUHAMED INTRODUCING CONFERENCE, SAYING "The conference carefully reviewed its developments since its 109th meeting in March 2000, when the organisation increased its supply to the market with a view to restoring crude oil prices to more moderate levels. Taking into consideration the conditions prevailing in the market and in order to respond to consumer concern, overpriced levels and the Organisation's own wish to moderate prices, the conference has agreed a further increase in overall production applicable from 1st July, 2000, making the country's output levels as follows" 3.44 18. CUTAWAY JOURNALISTS 3.49 19. (SOUNDBITE) (English) SECRETARY GENERAL OF OPEC, RILWANU LUKMAN, SAYING "This time around there was absolutely no difference, all the ten agreed and signed...everyone signed and we are all together, we are all in this together" 4.10 20. SLV NEWS CONFERENCE IN PROGRESS 4.18 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 7th July 2000 13:00
- Keywords:
- Location: VIENNA, AUSTRIA
- Country: Austria
- Reuters ID: LVAUQIA8J2NROJHX18FXWBKGLHH
- Story Text: OPEC has approved a cautious deal to raise world
crude supplies and tame runaway oil prices that have pushed up
energy bills in the West.
Kuwaiti Oil Minister Sheikh Saud Nasser al-Sabah said
on Wednesday (June 21)
the cartel agreed to lift output for 10 member countries to
25.4 million barrels a day (BPD) -- a modest three percent
increment of just over 700,000 barrels daily.
Dealers said the increase might not be enough to calm
prices and crude futures in New York rose 70 cents to 31.35 a
barrel USD -- well in excess of the 25 USD a barrel OPEC is
targeting.
The pact raises production limits for 10 OPEC members,
excluding sanctions-bound Iraq, to 25.4 million bpd from 24.69
million. Leakage over quotas means actual supply already is
running at 25.3 million bpd.
OPEC Secretary-General Rilwanu Lukman estimated the deal
would bring 600-700,000 barrels a day of net new oil to the 77
million bpd world market. That includes more from non-OPEC
countries that have managed the market with OPEC.
Outside the cartel, Mexico and Norway soon are expected to
announce their own additional supplies.
Asked what OPEC would do if prices stay high, OPEC's
Lukman said: "We will do whatever it takes to bring (prices)
down to a level we consider more reasonable."
OPECs new agreement, effective from July 1, includes Iran.
Iranian Oil Minister Bijan Zanganeh said he had endorsed
the deal.
In March, Tehran opted out of an OPEC pact for more oil
complaining of undue pressure from the United States.
OPEC came under pressure from the United States and other
leading oil importers to lift supply for the second time this
year after extra deliveries in March failed to control rising
prices.
Officials in Washington had suggested that an extra
million barrels a day would be needed to cool the market.
But cartel delegates said most OPEC nations, ever fearful
of a price slump, preferred to adjust export limits by just
500,000 bpd. Leading producer Saudi Arabia, an ally of
Washington's was able to convince them to accept the slightly
higher volume.
Concerns were that with lowly oil inventories now building
quickly a higher volume might have tipped prices into a
downward spiral.
And most dealers say that crude prices would be lower were
it not for new environmental rules this summer in the United
States that have restricted the pool of American gasoline
supply.
But there also has been reluctance among some in OPEC to
sanction a big increment because, already producing to
capacity, many would be unable to take advantage of higher
quotas.
Industry observers say only Saudi Arabia and its Gulf
allies Kuwait and the United Arab Emirates hold significant
spare capacity.
OPEC aggravated the market two weeks ago when it decided
not to release 500,000 bpd under a price stability mechanism
set up in March.
Ministers said the device, designed to adjust supply if prices
stay outside a 22-28 USD band for OPEC crude, would be kept in operation but it remains unclear exactly how it will work.
Longer term, high oil prices remain a worry to oil
producers as well as consuming nations. Producers fret that
customers will switch to other fuels, like natural gas,
denting demand for petroleum.
Rising energy costs already have forced interest rates
higher in the United States and Europe as central banks try to
keep inflation under control.
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