- Title: AUSTRIA: OPEC PRODUCERS GATHER FOR EMERGENCY TALKS IN VIENNA
- Date: 11th January 2003
- Summary: (W8) VIENNA, AUSTRIA (JANUARY 11, 2003) (REUTERS) (NIGHT SHOTS) 1. SV: SAUDI OIL MINISTER ALI NAIMI GETTING OUT OF CAR 0.08 2. SV: SOUNDBITE (ENGLISH) SAUDI OIL MINISTER ALI NAIMI WALKING INTO VIENNA'S ANA GRAND HOTEL; ALI NAIMI SAYING: "We are here to make sure that the market is not short. There will be no shortage of supply in the market." (English) SAUDI OIL MINISTER WALKING TOWARDS ELEVATOR SURROUNDED BY CROWD OF JOPURNALISTS SAYING: "There will be no missing barrels." 0.47 3. SOUNDBITE (ENGLISH) OPEC PRESIDENT AND QATARI OIL MINISTER ABDULLAH AL-ATTIYAH GETTING OUT OF CAR IN FRONT OF VIENNA'S INTERCONTINENTAL HOTEL SURROUNDED BY CROWD OF JOURNALISTS SAYING: "We will meet tomorrow and discuss all options." JOURNALIST ASKING QUESTION: "Is there a shortage on the market?" ABDULLAH AL-ATTIYAH SAYING: "So far there is a little shortage but we have to see very carefully because this shortage is related to what happens in Venezuela and the answer to that is coming next week." JOURNALIST ASKING QUESTION: "So, it could stop next week?" ABDULLAH AL-ATTIYAH ANSWERING: "I hope so. I am very, very supportive." 1.44 4. OPEC PRESIDENT AND QATARI OIL MINISTER SOUNDBITE (ENGLISH) ABDULLAH AL-ATTIYAH WALKING IN HOTEL LOBBY SURROUNDED BY JOURNALISTS ABDULLAH AL-ATTIYAH ANSWERING QUESTION "When will increase (in production) be effective?" AL-ATTIYAH SAYING: "I believe if we agree tomorrow, for sure we will start from February 1." "Discussions will not be easy, but if there will be a decision it will be pro rata." ABDULLAH AL-ATTIYAH WALIKING TOWARDS ELEVATOR ESCORTED BY SECURITY 2.18 5. SOUNDBITE (ENGLISH) UNITED ARAB EMIRATES (UAE) OIL MINISTER OBAID BIN SAIF AL-NASSERI ENTERING HOTEL SURROUNDED BY CROWD OF JOURNALISTS UAE OIL MINISTER OBAID BIN SAIF AL-NASSERI ANSWERING JOURNALIST'S QUESTION "What is your understanding of the situation with Venezuela right now?" AL-NASSERI SAYING: "Everybody knows about this unfortunate situation. We hope they will overcome this." REPORTER'S QUESTION: "Should Venezuela be given a nominal quota?" AL-NASSERI SAYING: "Well, they will take their quota, full stop." (2 SHOTS) 2.52 6. SV'S/SCU: HEAD OF NIGERIA'S DELEGTATION RILWANU LUKMAN ENTERING CAR IN FRONT OF HOTEL, WAVING AT JOURNALISTS FROM CAR (3 SHOTS) 3.18 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 26th January 2003 12:00
- Keywords:
- Location: VIENNA, AUSTRIA
- Country: Austria
- Reuters ID: LVA7QYB6J3RO2DUD3TWHO91LSTOH
- Story Text: OPEC producers have begun to gather in Vienna for
emergency talks that will decide how far to open the oil taps
to prevent a price shock as war looms in Iraq.
Cartel ministers, who meet at 1130 GMT on Sunday, must
also plug a gap in supplies from the group's third biggest
producer Venezuela, hit by a six-week-old general strike.
Arriving in Vienna on Saturday (January 11), influential
Saudi Oil Minister Ali Naimi sent a strong message
to world oil markets, where prices recently hit a two-year
high, above $33 a barrel, for U.S. crude.
"We are here to make sure that the market is not short.
There will be no shortage of supply in the market... there
will be no missing barrels," Naimi said.
OPEC is under pressure from the United States to stop
prices running out of control ahead of a possible U.S. attack
against Baghdad, that some fear could be just weeks away.
Oil prices in the U.S. have just spiked above $33 for the
first time in two years and Washington is worried that
sluggish economic growth could be snuffed out by a jump in
energy costs.
OPEC ministers have to decide on the volume of additional
crude required to contain prices within their preferred
$22-$28 target range.
Saudi Arabia, in control of most of the world's spare
production capacity, wants an increase at the top end of the
range.
Others including the United Aerab Emirates, Iran, Algeria
and Libya are fearful that an end to the Venezuelan strike
could push prices sharply lower and prefer just one million
barrels daily.
OPEC President, also Qatari oil minister Abdullah
al-Attiyah said he saw a shortage of oil in the market due to
the strike in Venezuela but urged caution in hiking cartel
output when the duration of the stoppage was unknown.
"So far there is a little shortage but we have to see
very carefully because this shortage is related to what
happens in Venezuela," Attiyah said, adding that the situation
could alter swiftly.
He said that OPEC-member Venezuela had not yet informed
him of its current output levels.
"Discussion will not be easy, but if there is any
decision it will be pro rata," he added, declining to be drawn
on whether Venezuela would be included in any output hike.
United Arab Emirates Petroleum and Mineral Resources
minister Obaid bin Saif al-Nasseri told reporters OPEC 's
expected output hike will include all 10 members with quotas,
including strike-bound Venezuela.
"Everybody knows about this unfortunate situation but we
hope they will overcome this... They will take their quota",
Nasseri said.
Whatever the formal decision, Saudi is likely to raise
flows by as much as it thinks is necessary for keeping oil
under $30 to smooth diplomatic relations with Washington and
prevent accusations in the Arab world that it is benefiting
from war.
Riyadh sees its long-term interest in keeping prices
under control to foster the world economic growth that fuels
demand for its oil.
Already Saudi customers and shipping agents report
preparations for extra deliveries, particularly to the United
States, which relies on Venezuela for 13 percent of its
imports.
Sunday's Vienna meeting will address the awkward task of
how to divide additional supply allocations.
Some members may suggest Venezuela be excluded from a
new deal, leaving nine members of OPEC to share out the
incremental supply.
Caracas is sending a powerful delegation headed by Oil
Minister Rafael Ramirez and state oil company head Ali
Rodriguez to argue against that strategy.
It will not want to see its share of the OPEC pie shrink
now for fear it fails to recover its full stake in the future.
Political sensitivities in the cartel mean it is likely
to get its way.
Venezuela is also expected to get backing for a request
that new quotas be given temporary status, making it clear
that previous limits should be restored once its output
recovers.
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