NETHERLANDS: ORGANISATION OF PETROLEUM EXPORTING COUNTRIES (OPEC) EXPRESSES DEEP CONCERN ABOUT RISING WORLD OIL PRICES

Record ID: 643538

  • Title: NETHERLANDS: ORGANISATION OF PETROLEUM EXPORTING COUNTRIES (OPEC) EXPRESSES DEEP CONCERN ABOUT RISING WORLD OIL PRICES
  • Date: 23rd May 2004
  • Summary: (EU) AMSTERDAM, THE NETHERLANDS (MAY 22, 2004) (REUTERS) 1. WIDE SHOT OF AMSTERDAM OKURA HOTEL WHERE THE INFORMAL OPEC MINISTERS MEETING WAS HELD 0.06 2. (SOUNDBITE) (English) QATAR OIL MINISTER ABDULLAH BIN HAMAD AL-ATTIYAH, REFERRING TO THE SAUDI PROPOSAL OF INCREASING OPEC OUTPUT BY TWO MILLION BARRELS A DAY, SAYING: "I have already said it before, yes, I will support it if all OPEC ministers will support. Qatar will support everything that OPEC decides. (Qu: do you think more is needed?) "Oh, I think we have to wait and see. We will bet, you know." 0.35 3. SV AL-ATTIYAH SURROUNDED BY MEDIA; MV ALGERIAN MINISTER FOR OIL KHELIL CHAKIB ARRIVING AT THE HOTEL; OPEC MINISTERS ARRIVING 0.55 4. (SOUNDBITE) (English) IRAQI MINISTER FOR OIL BAHR AL-ULOUM, EXPLAINING THE IRAQI PRODUCTION TARGETS, SAYING "Our target is to keep our export production about 1.8 million barrels a day. And that took place in March, in April. We try to hit the target of three million barrels per day by the end of this year." 1.30 5. MV MEDIA 1.41 6. SLV BEGINNING OF NEWS CONFERENCE GIVEN BY OPEC PRESIDENT PURNOMO YUSGIANTORO 1.57 7. (SOUNDBITE) (English) YUSGIANTORO GIVING A STATEMENT AFTER THE INFORMAL MEETING: "Ministers also deliberated on proposals advanced by certain member countries to increase production in line with OPEC's commitment, to do whatever we can to ensure market stability and ensure adequate supply to support world economic growth. The consultation observed that bringing order and stability to the oil market is the responsibility of all stakeholders in the industry. We call for joint efforts to bring prices down from their current high levels." 2.34 8. CAMERAMAN 2.38 9. (SOUNDBITE) (English) YUSGIANTORO SAYING: "There are proposals on the table, but this meeting is an informal consultative meeting. The decision is made during the conference that will be held in Beirut on the 3rd of June." 2.53 10. NEWS CONFERENCE 2.57 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 7th June 2004 13:00
  • Keywords:
  • Location: AMSTERDAM, NETHERLANDS
  • Country: Netherlands
  • Reuters ID: LVADDZSHYJB97GHKO6W4IV5FO5LR
  • Story Text: OPEC expressed "deep concern" about rising world oil
    prices, saying it wanted to cut fuel costs to support world
    economic growth.

    OPEC on Saturday (May 22, 2004) expressed "deep concern" about
    high world oil prices and said it did not want to endanger world economic
    growth. But the Organisation of the Petroleum Exporting Countries President
    Purnomo Yusgiantoro said a decision on raising supplies would wait until a
    full meeting in Beirut on June 3.

    Purnomo was speaking after an informal meeting of cartel
    ministers in Amsterdam. No recommendation was made on a Saudi proposal for a
    big increase in output.

    Saudi wants the cartel to raise production limits by at least 8.5
    percent, two million barrels a day, to topple prices from $40 a barrel for
    U.S. crude. OPEC's chief economist said world markets were absorbing 2.3
    million bpd more than existing official producer limits of 23.5 million.

    "I have already said it before, yes, I will support it if all OPEC
    ministers will support. Qatar will support everything that OPEC decides,"
    Purnomo said in reference to the Saudi proposal.

    Producers face heavy pressure from big petroleum importers who fear
    rising energy costs could stunt world economic growth. Ministers from the
    Group of Seven top industrialised nations, meeting this weekend in New York,
    have said they want swift OPEC action.

    Saudi already has decided to raise its own output to nine million
    barrels daily next month, up from about 8.3 million bpd in April, Saudi Oil
    Minister Ali al-Naimi said on Thursday. He said Riyadh could open the pumps
    even further if necessary, giving an assurance that Saudi was capable of
    reaching a maximum of 10.5 million barrels daily.

    Other OPEC members, already pumping at full capacity, are expected to
    fall in line with Riyadh's proposal.

    The Iraqi Minister for Oil Bahr al-Uloum told Reuters: "Our target
    is to keep our export production about 1.8 million barrels a day. And that
    took place in March, in April. We try to hit the target of three million
    barrels per day by the end of this year."
    The 11-member OPEC accounts for about half the international trade on
    the 80-million-barrel-a-day world market. Number two cartel producer Iran
    said it will not oppose the plan, but warned that factors beyond OPEC's
    control were driving oil prices.

    World oil prices eased on Friday on news of the Saudi plan, U.S. crude
    ending off 87 cents at $39.85 U.S. dollars a barrel, its first close below $40
    in 10 days. OPEC said refinery bottlenecks, geopolitics, rising world demand
    and heavy speculation on crude futures by investment hedge funds have combined
    to drive up oil prices.


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