AUSTRIA: THE ORGANISATION OF PETROLEUM EXPORTING COUNTRIES (0PEC) AGREE TO RAISE FORMAL PRODUCTION QUOTAS
Record ID:
643523
AUSTRIA: THE ORGANISATION OF PETROLEUM EXPORTING COUNTRIES (0PEC) AGREE TO RAISE FORMAL PRODUCTION QUOTAS
- Title: AUSTRIA: THE ORGANISATION OF PETROLEUM EXPORTING COUNTRIES (0PEC) AGREE TO RAISE FORMAL PRODUCTION QUOTAS
- Date: 16th June 2005
- Summary: (EU) VIENNA, AUSTRIA (JUNE 15, 2005) (REUTERS) 1. SLV EXTERIOR OF OPEC HEADQUARTERS; SLV CARS AND GUARDS IN FRONT OF HEADQUARTERS; SCU ARMED GUARD IN FRONT OF ENTRANCE 0.15 2. MV SAUDI OIL MINISTER ALI NAIMI WALKING INTO BUILDING; SLV ARMED GUARD OUTSIDE BUILDING; SLV OPEC SIGN ON BUILDING; SLV LARGE GROUP OF REPORTERS IN FRONT OF BUILDING (4 SHOTS) 0.37 3. (SOUNDBITE) (English) CHAKIB KHELIL, ALGERIAN OIL MINISTER SAYING: "It depends when and it what the situation is going to be. We don't know what is going to happen in the next three to four months, but what we know is that we are going to have the same refining capacity problems that we have now." 0.53 4. (SOUNDBITE) (English) ABDULLAH AL-ATTIYAH, QATARI OIL MINISTER SAYING: "I am not saying what is the high price, but today because now we see that it's not the crude oil, it's the products. We have a very strange position - there is more crude oil but there are limitations on products because of refinery limitations. So my personal advice is we should look carefully to build more refineries." 1.21 5. SLV CAR LEAVING 1.29 6. MV IRANIAN OIL MINISTER BIJAN ZANGANEH WALKING OUT OF BUILDING FOLLOWED BY REPORTERS 1.40 7. MV OPEC PRESIDENT, KUWAITI OIL MINISTER SHEIKH AHMAD AL-FAHD AL-SABAH WALKING INTO NEWS CONFERENCE ROOM; SLV NEWS CONFERENCE 1.54 8. (SOUNDBITE) (English) OPEC SPOKESMAN OMAR FAROUK IBRAHIM SAYING "In the light of the expectation of strong global oil demand during the remainder of the year, in particular in the fourth quarter of 2005 and with the resumption of price increases, the conference decided to raise the current OPEC production ceiling by 500,000 barrels per day, to 28.0 million barrels per day, with effect from 1ST July 2005." 2.23 9. MV REPORTERS LISTENING; SCU REPORTER WRITING INTO NOTEBOOK; SLV REPORTERS 2.40 10. (SOUNDBITE) (English) SHEIKH AHMAD AL-FAHD AL-SABAH, OPEC PRESIDENT, KUWAITI OIL MINISTER SAYING: "If you want to solve the problem, I know OPEC is always under the scope and always OPEC is blamed because of the prices, although the market will supply but if you want to solve the problem I think we have to find the main reason, and the main reason is the product. That means that there is not enough capacity in the refining and there was for a long time no investment in the downstream, especially refining." 3.14 11. MV REPORTERS LISTENING; OPEC PRESIDENT LEAVING NEWS CONFERENCE, CROWD OF REPORTERS AROUND HIM 3.32 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 1st July 2005 13:00
- Keywords:
- Location: VIENNA, AUSTRIA
- Country: Austria
- Reuters ID: LVA6EKG46G6TPZBMV0B6F9FVNMFP
- Story Text: The Organisation of the Petroleum Exporting Countries (OPEC) agreed on
Wednesday (June 15, 2005) to raise its formal production quotas by 500,000 barrels a
day (bpd) to 28 million bpd.
Cartel President Sheikh Ahmad al-Fahd al-Sabah was authorised to trigger
consultations on a further 500,000 bpd increase within a matter of weeks,
should prices stay high.
But producers offered scant hope for pushing prices back below the 50 U.S.
dollars (USD) a barrel mark they would prefer in order to sustain the world
economic growth that fuels oil demand.
"We don't know what is going to happen in the next three to four months,
but what we know is that we are going to have the same refining capacity
problems that we have now," Algerian oil minister Chakib Khelil told reporters
after the meeting.
Abdullah Al-Attiyah, the Qatari oil minister said, "We have a very strange
position - there is more crude oil but there are limitations on products
because of refinery limitations."
OPEC Spokesman Omar Farouk Ibrahim told reporters after the meeting that,
"In the light of the expectation of strong global oil demand during the
remainder of the year, in particular in the fourth quarter of 2005, and with
the resumption of price increases, the conference decided to raise the current
OPEC production ceiling by 500,000 barrels per day, to 28.0 million barrels per
day, with effect from 1 July 2005."
OPEC president, Kuwaiti Oil Minister, Sheikh Ahmad al-Fahd al-Sabah told a
news conference that only new investments in refineries could solve the problem
of current high oil prices.
"If you want to solve the problem - I know OPEC is always under the scope
and always OPEC is blamed because of the prices, although the market will
supply - but if you want to solve the problem I think we have to find the main
reason, and the main reason is the product. That means that there is not enough
capacity in the refining and there was for a long time no investment in the
downstream, especially refining," he said.
Latest estimates are that OPEC, including Iraq which is exempt from a
quota, is already touching 30 million bpd, near a 25-year high.
Saudi Arabia is the only producer sitting on spare volume. But Saudi Oil
Minister Ali al-Naimi said Riyadh could not force-feed a market already sated
with crude.
Traders said the new deal merely legitimises existing output and prices
rose sharply on Wednesday afternoon.
U.S. July light sweet crude rose 1.40 USD to 56.40 USD a barrel, up 30
percent so far this year, having posted near 10 USD gains over the last three
and a half weeks.
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