Y2k? ""......The cartel a year ago took drastic action to lift prices from single digits by removing 4.32 million barrels daily

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Y2k?

QUOTE: "......The cartel a year ago took drastic action to lift prices from single digits by removing 4.32 million barrels daily in an agreement that ends this month. "

Y2k ??

If OPEC can SHIP. but removed OIL from the market in 1999........where is the Y2k "effect"??

http://dailynews.yahoo.com/h/nm/20000326/bs/energy_opec_7.html

".........But the cartel is likely to agree to meet again in June to make a decision on whether additional volumes were needed to bring oil into the $20-$25 a barrel range that satisfies both Washington and OPEC. "

Y2k ?? If OPEC can SHIP.........where is the Y2k "effect"??

".........Khelil spoke on Saturday of a perception that OPEC would offer another 1.2-1.4 million bpd. That leaves only small producer Libya opposed to more oil. "

Y2k ?? If OPEC can SHIP.........where is the Y2k "effect"

Y2k?

"........Mexico Lifting Restrictions

"............Mexico, OPEC's main non-OPEC ally in limiting oil sales, says it will add 200,000-300,000 bpd. Energy Minister Luis Tellez said in a magazine interview that he would phase in the extra oil, effectively ending any Mexican restrictions on exports after two years of cooperation with OPEC. "

Y2k ?? If Mexico can SHIP.........where is the Y2k "effect"

Sunday March 26 5:33 AM ET OPEC Seeks Deal for Five Percent More Oil

By Tom Ashby

VIENNA (Reuters) - OPEC oil ministers were gathering on Sunday to nail down the details of a pact that is expected to raise their crude exports by about five percent.

The Organization of the Petroleum Exporting Countries is set to seal the agreement at a conference starting here on Monday in an effort to ease high oil prices and avert an economic downturn in the oil importing nations of Asia and the West.

The producers are expected to bridge small differences in opinion over how much extra they can afford to pump without sending international markets for their oil into a tailspin.

A senior Gulf official said on Saturday that pre-conference negotiations were closing in on a deal to lift crude output by between one to 1.5 million barrels daily.

Saudi Arabia is believed to favor the top end of that scale while Iran wants to limit the increase to one million bpd.

The Gulf official said a recent reversal in oil prices to $28 a barrel in the U.S., from a peak of $34 two weeks ago, could mean the final decision would come closer to a million barrels daily. Algeria On Board

Algerian concerns that extra oil might send prices sliding appear to have been allayed.

Saudi Oil Minister Ali al-Naimi, after meeting with his Algerian counterpart Chakib Khelil said: ``We and Algeria are agreed on a position.''

Khelil spoke on Saturday of a perception that OPEC would offer another 1.2-1.4 million bpd. That leaves only small producer Libya opposed to more oil.

OPEC's incremental oil will come on top of official limits for 10 OPEC nations of 22.976 million bpd agreed last March, for an addition of about five percent.

The cartel a year ago took drastic action to lift prices from single digits by removing 4.32 million barrels daily in an agreement that ends this month.

Leakage above official limits means most producers are already pumping near projected new quotas. Immediate net extra supply may only be a few hundred thousand barrels a day in the form of extra leakage.

But the cartel is likely to agree to meet again in June to make a decision on whether additional volumes were needed to bring oil into the $20-$25 a barrel range that satisfies both Washington and OPEC. OPEC delegates said recent contacts between Gulf OPEC leaders and President Clinton had settled any last minute reservations about the output hike.

Worried about high gasoline prices and inflationary pressures, the United States sees room for OPEC eventually to open up the taps by three million barrels daily on the 75 million bpd world market. But the Clinton administration is understood to be content with the step-by-step approach signaled by OPEC which would see more oil on the market later in the summer if prices do not cool in the next few months.

Mexico Lifting Restrictions

Mexico, OPEC's main non-OPEC ally in limiting oil sales, says it will add 200,000-300,000 bpd. Energy Minister Luis Tellez said in a magazine interview that he would phase in the extra oil, effectively ending any Mexican restrictions on exports after two years of cooperation with OPEC.

Sanctions-bound Iraq, not a party to OPEC oil cuts, says it also is planning to raise exports in the next few weeks under Baghdad's humanitarian exchange with the United Nations. Iraqi Oil Minister Amir Rasheed said the U.N.'s release of spare parts for Iraq's crumbling oil sector would allow Baghdad quickly to restore failing production.

Iraq in a month aimed to lift oil exports by 700,000 bpd to 2.4 million bpd.

Venezuelan Oil Minister Ali Rodriguez told reporters in Vienna that the extra Iraqi output would not have an impact on OPEC's negotiations.

http://dailynews.yahoo.com/h/nm/20000326/bs/energy_opec_7.html

-- cpr (buytexas@swbell.net), March 26, 2000

Answers

http://hv.greenspun.com/bboard/q-and-a-fetch-msg.tcl?msg_id=002qU7

Link

Perhaps the biggest surprise over the past year has not been higher gas prices, but rather that OPEC, rarely able to stick to production agreements in the past, has largely adhered to the target it set last year.

''Usually, they are like a bunch of baseball owners and can never agree,'' O'Grady says. ''This is the first modicum of success they have had as a cartel in 15 or 20 years.''

-- (news@of.note), March 26, 2000.


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