Posted on 10/27/2001 12:18:17 PM PDT by relee
Saudi: OPEC to slash output in November
Global oil supply was excessive, according to Saudi oil minister
October 27, 2001, 01:19 PM
ABU DHABI (AFP)
- The world's top oil producer Saudi Arabia and two other Gulf nations announced Saturday that OPEC will shortly reduce production in order to push prices up.
Non-OPEC Oman said there was a need to reduce "current (global) production" by at least one million barrels a day in order to boost the price of a barrel to 25 dollars from current 19 to 20 dollar level.
"We (OPEC) have already reduced our production three times. I cannot see what prevents us from doing it again in order to preserve the price band" of 22 to 28 dollars per barrel, Saudi Oil Minister Ali Nuaimi said.
"OPEC will take all necessary measures to maintain the band," he added, at the end of a meeting with his counterparts Obeid Al-Nassiri from fellow OPEC member UAE, and Mohammad bin Hamad Al-Romhi of independent producer Oman.
Nuaimi said global oil supply was excessive and, asked if this meant the oil cartel was going to reduce production or, instead, decide to tighten members' compliance with their quotas, he replied "All of the above".
"There is an agreement in principle to change the production ceiling," added United Arab Emirates Oil Minister Obeid al-Nasseri at a press conference.
Romhi said a "one million bpd (cut) would be a good start, from current production." The Middle East Economic Survey (MEES) reported Saturday that a proposal to cut output by 750,000 to one million bpd will be on the agenda of the November 14 ministerial meeting of OPEC.
A joint statement issued after the Abu Dhabi meeting set the stage for broad agreement.
"The ministers have agreed to intensify their contacts and to continue their consultations with all parties concerned to ensure their support and cooperation in order to take the proper measures to balance the global oil market and stabilize prices, including measures to reduce excess crude supply from world oil markets," it said.
"The Sultanate of Oman has expressed its readiness to cut production and to cooperate with the rest of the producing countries from OPEC and non-OPEC in order to maintain the price band target," the statement said.
"The ministers noted with great concern the continued deterioration in crude oil prices to levels unseen since two years, caused by the most recent downward revision in world demand for the current year as well as next year and the excess supply and growing commercial stocks as compared to last year." Asked if he agreed that the excess volume was in the range of 700,000 to one million bpd, Nuaimi said the experts meeting on October 29 at the OPEC headquarters in Vienna "will hopefully distil that number and advise were it should be." The conclusions of the experts' meeting is supposed to weigh heavily on the decision to be taken by OPEC at the crucial ministerial conference on November 14.
Nuaimi warned that unless action is taken, the oil producers would find themselves in a situation similar to 1997, when a barrel of crude touched seven dollars.
Hemi hoped that agreements could be reached with the independent producers, such as Russia and Mexico, before the 11-member organisation's ministerial meeting.
Venezuela and Iraq have led calls for a snap reduction in OPEC output by one million bpd.
However OPEC has faced a dilemma in how to respond to the market slump.
Usually it would simply cut production to prop up prices but OPEC has been wary of sparking a political storm by trying to force prices higher at a time when the world`s major industrialized economies are heading into recession in the aftermath of the September 11 terror attacks on the United States.
The cartel has not triggered an automatic cut of 500,000 bpd foreseen by a price-band mechanism, even though its own basket price has remained under the price-band's floor for four weeks.
ANWR is a four letter word to Tom Daschle.
Some of the Islamic nations have called for boycotts of American products. I think its time we did the same, and that goes for oil, too.
Be as economic as you can with your gas usage. It's time they found out that we CAN survive without them. We CAN find other ways of heating homes..wood burning stoves and fireplaces, steam heat, solar.... we CAN cut back on needless driving.... I'm sure there are other ways but these will help for starters.
Each time you choose to not drive, consider that you are preventing them from making a dollar. It will add up.
VP Cheney revealed the mindset of this administration when he derided conservation measures a few months ago.
If you are an oilman, you want people to use oil—period.
This mentality is not going to change at the top, no matter what. Grassroots movements might make a fleeting impact in terms of reducing consumption, but this is not the game plan of those in charge.
The plan is to subdue Central Asia and make it safe for investment of the majors and be on standby to seize the Eastern Province of Saudi Arabia at a moment's notice if the KSA should fall.
I just hope our military is up to the tasks being assigned it. It is a tall order to stabilize a petroleum empire and keep it that way.
I remember the rations of the Carter administration, and have no problem with it.
VP Cheney revealed the mindset of this administration when he derided conservation measures a few months ago. If you are an oilman, you want people to use oil—period.
Yeah I know.... made me chuckle when he said it! Gee, I wonder why he wants to promote buying over priced oil????? Could it be that someone he knows might have a vested interest in oil??????
This administration has tried to cutback the amount of funds the terrorists have by freezing their assets. Bring them to their knees via lack of funds. So, why is this theory not good for OPEC????
Own a van or SUV? Park it unless you're doing something which requires it. Get a dodge neon or a motorcycle for all the bombing around with just yhou in the vehicle.
After making my last post I wondered, 'When is trading with the enemy NOT trading with the enemy?' When you want something they have. Could this be why we haven't or WON'T declare war on some of these nations? Because then if we bought their oil we'd be technically trading with the enemy? Granted only 'some' of the people from these nations have declared war on the US, but what does that tell you when the host nation doesn't DO anything about these 'people'?? That they quietly sanction the idea?
And when they 'cutback' output???? Higher prices still! LOL
Yeah, unleaded regular was as low as 97.9 cents at a few stations around here yesterday. Georgia has a low state tax on gasoline.
Yes... Drillnowdammit.
If this war escalates it could all soon be OUR oil.
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