USA: CONSUMERS ARE NOT OUT OF THE WOODS YET DESPITE AN OPEC DECISION TO INCREASE PRODUCTION OF CRUDE OIL

Record ID: 648170

  • Title: USA: CONSUMERS ARE NOT OUT OF THE WOODS YET DESPITE AN OPEC DECISION TO INCREASE PRODUCTION OF CRUDE OIL
  • Date: 13th September 2000
  • Summary: NEW YORK, NEW YORK, UNITED STATES (SEPTEMBER 11, 2000) (REUTERS) 1. HAS /SCU OIL TRADING PIT AT THE NEW YORK MERCANTILE EXCHANGE (NYMEX) (3 SHOTS) 0.24 2. (SOUNDBITE) (English) LAWRENCE J. GOLDSTEIN, PRESIDENT OF PETROLEUM INDUSTRY RESEARCH FOUNDATION, INC. SAYING: "Any measurable increase in production is welcome in the market. The problem is that any increase in production we're likely to see is not enough to immediately change the tone of the market. Product inventories, heating oil and gasoline are historically tight. Increases in crude oil won't make a material change in the product inventories, so that while we could see crude oil prices topping out over the next several days, product prices to end use consumers are still going to look historically high." 0.51 3. SCU TRADING PRICE BOARD AT NYMEX 0.58 4. HAS /SCU TRADERS IN OIL PIT AT NYMEX (4 SHOTS) 1.25 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 28th September 2000 13:00
  • Keywords:
  • Location: NEW YORK, NEW YORK, UNITED STATES
  • City:
  • Country: USA
  • Reuters ID: LVA8CMDTFICYI0VLHUWMYGMWES43
  • Story Text: Oil consumers are not out of the woods yet despite a
    decision at the weekend by OPEC to increase production of
    crude oil.

    Despite a decision in Vienna by OPEC to increase oil
    production, prices for crude did not come down in the markets
    Monday (September 11).

    The organisation of the Petroleum Exporting Countries on
    Sunday (September 10) agreed to raise output by 800,000
    barrels per day, slightly above the pre-meeting expectations
    of 700,000.

    It is the third time since April that OPEC has released
    more oil to the market in an attempt to dampen sky-high
    prices, following pressure from world leaders that the price
    of oil could trigger a worldwide economic depression.

    However the increase is unlikely to affect oil prices for
    consumers heading in to the heating oil's biggest season.

    "Any measurable increase in production is welcome in the
    market. The problem is that any increase in production we're
    likely to see is not enough to immediately change the tone of
    the market. Product inventories, heating oil and gasoline are
    historically tight. Increases in crude oil won't make a
    material change in the product inventories, so that while we
    could see crude oil prices topping out over the next several
    days, product prices to end use consumers are still going to
    look historically high," Lawrence Goldstein, President of
    Petroleum Industry Research FOundation Inc told Reuters
    Television.

    OPEC's latest deal means it has lifted supply this year by
    3.2 million barrels per day, a 14 percent increase, restoring
    most of the curbs dating back to 1998 when crude slumped
    briefly below 10 U.S. dollars a barrel.


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