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Saudi hints at no change in Opec oil output
Vienna, Dec 04: Saudi Arabia, de facto leader of Opec, hinted that it supported other members of the oil producer`s group calling for no change in output at this week`s meeting on production policy.
Vienna, Dec 04: Saudi Arabia, de facto leader of
Opec, hinted that it supported other members of the oil
producer's group calling for no change in output at this
week's meeting on production policy.
However, Saudi Arabian Oil Minister Ali Naimi warned
“there is a high possibility'' that the organization of
petroleum exporting countries will have to cut production
early next year if it hopes to avert a springtime slump in
prices”.
“Although the market is in balance, we have to be very, very careful about the next few months,'' Naimi told reporters on arrival at a Vienna hotel.
Opec members have been cashing in on high oil prices, and the group's Secretary-General Alvaro Silva has already ruled out any increase in output that might help ease the pain for importing countries. Silva said that the decision Opec reaches at Thursday's meeting would be either to keep production steady or to decrease it.
Opec fears that prices might plunge during the second quarter of 2004, when demand typically ebbs as warmer weather in the northern hemisphere means people buy less heating oil for their homes.
A relentless rise in output from Russia and other non-Opec producers, together with a steady revival in Iraq's postwar oil production, adds to Opec's anxiety. Several members have said the group must be ready to curb production early next year to keep oil prices from tumbling.
Bureau Report
“Although the market is in balance, we have to be very, very careful about the next few months,'' Naimi told reporters on arrival at a Vienna hotel.
Opec members have been cashing in on high oil prices, and the group's Secretary-General Alvaro Silva has already ruled out any increase in output that might help ease the pain for importing countries. Silva said that the decision Opec reaches at Thursday's meeting would be either to keep production steady or to decrease it.
Opec fears that prices might plunge during the second quarter of 2004, when demand typically ebbs as warmer weather in the northern hemisphere means people buy less heating oil for their homes.
A relentless rise in output from Russia and other non-Opec producers, together with a steady revival in Iraq's postwar oil production, adds to Opec's anxiety. Several members have said the group must be ready to curb production early next year to keep oil prices from tumbling.
Bureau Report