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OIL: OPEC Agrees to Cut Output By Two Million Barrels A Day
Yahoo via Dow jones ^ | Thu Apr 24, 4:33 PM ET | Stella Farrington of Dow Jones Newswires

Posted on 04/24/2003 7:48:35 PM PDT by Ernest_at_the_Beach

OPEC Agrees to Cut Output By Two Million Barrels A Day
Thu Apr 24, 4:33 PM ET

VIENNA -- Organization of Petroleum Exporting Countries ministers agreed to cut two million barrels a day from current output levels at their emergency meeting here Thursday, but also decided to increase their output ceiling to 25.4 million barrels a day from 24.5 million barrels a day.

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Meanwhile, OPEC (news - web sites) (News - Websites)President Abdullah bin Hamad Al Attiyah warned Thursday that the oil-producer group would look at even deeper cuts in its output come its June 11 meeting.

Speaking at a press conference after OPEC agreed to cut its current output by two million barrels a day, Mr. Al Attiyah said it wouldn't be too late when its latest decision comes into effect in June.

"If we do nothing, the price could fall below $22 barrels. Everyone in OPEC proposed the quota change," he said.

By the decision, OPEC wasn't trying to assume control of Iraq (news - web sites) output and when it returns to oil output, OPEC would welcome it, he added.

Mr. Al Attiyah said the price band mechanism that OPEC uses to steer the price with would remain in place.

The key 27.4 million barrels a day output figure from which OPEC has decided to trim two million barrels a day includes some prewar Iraq oil production, Mr. Al Attiyah said. Taking out this amount of oil takes the group down to its new output ceiling of 25.4 million barrels a day, he added.

On the issue of members' quotas, OPEC didn't discuss individual countries' request for changes to their quotas. But Iraq's would be reviewed when it came back on stream, he said.

The group's de facto leader, Saudi Arabia, would slice one million barrels a day from its current output and would have a revised quota under the terms of the new ceiling of 8.25 million barrels a day.

For technical reasons, Mr. Al Attiyah said, the group's oil output in May will be unchanged from 27.4 million barrels a day.

The OPEC president said he had had support from non-OPEC countries such as Russia, Mexico and Oman, without giving further details.

-- Stella Farrington of Dow Jones Newswires contributed to this article.




TOPICS: Breaking News; Business/Economy; Foreign Affairs; Front Page News; News/Current Events
KEYWORDS: energy; energylist; iraq; oil; opec; warlist
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1 posted on 04/24/2003 7:48:35 PM PDT by Ernest_at_the_Beach
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To: *war_list; W.O.T.; Dog Gone; Grampa Dave; blam; Sabertooth; NormsRevenge; Gritty; SierraWasp; ...
OFFICIAL BUMP(TOPIC)LIST
2 posted on 04/24/2003 7:49:43 PM PDT by Ernest_at_the_Beach (Where is Saddam? and where is Tom Daschle?)
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To: Ernest_at_the_Beach
Hmm. Hasn't Iraq dropped out of OPEC yet? Need to fix that asap.
3 posted on 04/24/2003 7:51:51 PM PDT by Starrgaizr
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To: Starrgaizr
Hasn't Iraq dropped out of OPEC yet?

It will. OPEC will be a dead entity two years from now.

4 posted on 04/24/2003 7:55:17 PM PDT by sinkspur
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To: Ernest_at_the_Beach
Oil prices are heading into the toilet. The Iraqi oil wells weren't blown up, and SARS is grounding thousands of flights, and hurting the world economy.

I wouldn't be surprised to see oil drop below $20, at least briefly.

5 posted on 04/24/2003 7:56:19 PM PDT by Dog Gone
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To: Dog Gone; Starrgaizr; sinkspur
Found this little note:

_____________________________________________________

Turkmenistan to increase oil exploitation in Caspian Sea ten-fold


 Ashkhabad, April 23, IRNA -- Turkmenistan's President Spar Murat      
Niyazov here on Wednesday said that his country plans to increase     
its oil exploitation in the Caspian Sea ten-fold in three years'      
time.                                                                 
    Speaking with a Japanese delegation that have travelled to        
Ashkhabad to attend the Japan-Turkmenistan Economic Cooperation       
Committee, President Niyazov said, "Presently, relying on the         
cooperation of Malaysian, Unite Arab Emirates', and German oil        
companies, Turkmenistan is exploiting one million tons of oil from    
its own territory of the Caspian Sea."                                
    The Turkmen mass media also quoted Niyazov as saying that besides 
three Russian oil companies, with which Turkmenistan is signing       
cooperation contracts, there are Iranian firms with which his country 
plans to cooperate in exploitation of its hydrocarbon resorts in the  
caspian Sea.                                                          
    Niyazov said that his country's oil reserves in the Caspian Sea is
12 billion tons, adding that his country is in need of the technical  
assistance of the foreign firms to make optimum use of them.          
    Referring to the immense land and sea oil resorts of his country, 
the Turkmen president said, "Turkmenistan is planning to be exploiting
between 55 to 60 million tons of gas a year by 2010, while the natural
gas exports of his country is expected to be 110 billion cubic meters 
by then.                                                              
    He said that presently Turkmenistan is producing one million tons 
 of liquefied gas annually, which is scheduled to increase to five to 
six million tons during the next three years.                         
NA/AR                                                                 
End                                                                   

6 posted on 04/24/2003 8:03:08 PM PDT by Ernest_at_the_Beach (Where is Saddam? and where is Tom Daschle?)
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To: *Energy_List
http://www.freerepublic.com/perl/bump-list
7 posted on 04/24/2003 8:04:09 PM PDT by Libertarianize the GOP (Ideas have consequences)
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To: Ernest_at_the_Beach
Its amazing that the only thing these turd world countries have to offer to the rest of the world is something that they have no control over - pumping oil out of the ground. If it wasn't for oil, what would these freakin' losers do. I can't wait for the time when technogy comes up with a replacement. Then the arab world can kiss the US arse and beg forgiveness for their sins. Hopefully there will be a Bush-type in the Whitehouse, that tells them that he has compassion for their people's struggle, but democratic capitalism is a must, before any US dollars go anywhere.
8 posted on 04/24/2003 8:09:31 PM PDT by Go Gordon
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To: Ernest_at_the_Beach
Crap. It's back to price gouging at the pumps, because I don't think Iraq has the facilities to output to tankers on a large scale. The Axis of Weasels is behind this.
9 posted on 04/24/2003 8:15:57 PM PDT by cake_crumb (UN Resolutions=Very Expensive, Very SCRATCHY Toilet Paper)
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To: Ernest_at_the_Beach
I appreciate his promising that, but I'll believe Turkmenistan's Caspian production capability when I actually see it.
10 posted on 04/24/2003 8:20:11 PM PDT by cake_crumb (UN Resolutions=Very Expensive, Very SCRATCHY Toilet Paper)
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To: Ernest_at_the_Beach
"OPEC Agrees to Cut Output By Two Million Barrels A Day "

who cares?
klintoon n algore depleted our "petroleum reserves"....
so....prez bush should "restock...", with cheap iraqi oil...

11 posted on 04/24/2003 8:20:15 PM PDT by hoot2
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To: cake_crumb
Sure they do. If I remember the offshore terminals were seized by navy seals. The terminals are some miles off shore.
12 posted on 04/24/2003 8:21:06 PM PDT by UB355
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To: Ernest_at_the_Beach
"his country plans to increase its oil exploitation in the Caspian Sea ten-fold in three years' "

but kalifornica will still have $2 plus gas prices...

13 posted on 04/24/2003 8:25:41 PM PDT by hoot2
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To: Ernest_at_the_Beach
"The key 27.4 million barrels a day output figure from which OPEC has decided to trim two million barrels a day includes some prewar Iraq oil production, Mr. Al Attiyah said"

Oh. So basically, they're not cutting their own production. They're tampering with gas prices and thus the Western economy in order to force the US to cave and allow the Axis of Weasles and UNweenies to continue receiving graft from the 'oil for food' scam.

14 posted on 04/24/2003 8:30:50 PM PDT by cake_crumb (UN Resolutions=Very Expensive, Very SCRATCHY Toilet Paper)
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To: UB355
"Sure they do. If I remember the offshore terminals were seized by navy seals. The terminals are some miles off shore"

I hope they've got enough to up production for a worldwide market and get very, very rich.

15 posted on 04/24/2003 8:33:48 PM PDT by cake_crumb (UN Resolutions=Very Expensive, Very SCRATCHY Toilet Paper)
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To: Ernest_at_the_Beach
The EU, Nato, UN and OPEC are becoming irrelevant right in front of us.

Remember the old tale of the Chesire Cat. It kept disappearing until only its grin remained. That is happening to these dangerous organizations as we watch.
16 posted on 04/24/2003 10:16:56 PM PDT by Grampa Dave (Being a Monthly Donor to Free Republic is the Right Thing to do!)
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To: Go Gordon
Its amazing that the only thing these turd world countries have to offer to the rest of the world is something that they have no control over - pumping oil out of the ground. If it wasn't for oil, what would these freakin' losers do.

Agreed. The time has come to break the back of OPEC. We have been held economically hostage by Third World kleptocracies for too long.

Fortunately, there is a movement in the Alaska legislature to allow drilling in ANWR. Plus, there are new technologies under development that, if successful, will allow us to convert anything organic (slaughterhouse waste, garbage, plastics, etc.) into a refined light Texas crude oil.

OPEC's days are numbered, heh heh heh.

17 posted on 04/25/2003 7:29:42 AM PDT by FierceDraka ("I am not a number - I am a FREE MAN!")
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To: Ernest_at_the_Beach
OPEC now knows they are not the only game in town, no longer able to blackmail the world economy.
18 posted on 04/25/2003 7:31:23 AM PDT by cynicom
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To: cake_crumb
"Oh. So basically, they're not cutting their own production. They're tampering with gas prices and thus the Western economy..."

You need the Secret Decoder Ring to understand OPECKERS' press releases. What this release ACTUALLY says is that production will continue AT CURRENT LEVELS thru May. It comes at the end of the story "for techinical reasons." Here's what that means.

The technical reason is Arab Bluster over Iraq, but the pragmatists behind the scenes want to keep the oil flowing because they want the cash from it. In addition, contracts are in place for that oil. So although they SAY they are cutting production, they really aren't. They've just dialed out the Iraqi production because - at the moment - it doesn't exist. Saying that they're cutting production is a sop to the Arab Street, not actually DOING it is just good business.

Michael

19 posted on 04/25/2003 7:38:36 AM PDT by Wright is right! (Have a profitable day!)
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To: cake_crumb
Oh, and BTW, I filled up yesterday in Nashville for 1.34 a gallon. We topped out at over a clam-80 not long ago.

Michael

20 posted on 04/25/2003 7:40:49 AM PDT by Wright is right! (Have a profitable day!)
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