Oil - Hot air from the middle east

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Kuwait minister says no Gulf agreement yet on new oil output hike

Bridge News Kuwait City--July 7

Agence France-Presse/Kuwaiti Oil Minister Sheikh Saud al-Sabah has denied that any agreement has been struck between Kuwait, Saudi Arabia and other Gulf oil producers to pump more oil into the market immediately to bring prices down. Sheikh Saud's comments follow reports that Gulf oil producers within OPEC, led by Saudi Arabia, were planning to increase output by 500,000 barrels per day in the coming days. "These reports are fabricated, baseless and aim at creating chaos in the international oil markets," Sheikh Saud told the Al-Rai Al-Aam newspaper.

"All OPEC members, and particularly Kuwait, are committed to their last agreement," Sheikh Saud added. "Any decision to activate the production mechanism is still premature."

Saudi Oil Minister Ali Naimi Monday stated his commitment to lower prices and promising to pump an extra 500,000 bpd--together with other OPEC members--if necessary.

OPEC members agreed at their meeting in Vienna June 21 to a modest production hike of 708,000 bpd effective July 1.

Oil executives in Kuwait separately told AFP that an increase in production would not likely be considered before the end of July.

Kuwait saw its output quota increased from 1.98 million bpd to 2.037 million bpd at the June OPEC meeting.


-- Cave Man (caves@are.us), July 07, 2000


Can OPEC really do anything if one of their members (like Saudi Arabia) decide to unilaterally increase output?

-- I'm Here, I'm There (I'm Everywhere@so.beware), July 07, 2000.

I think it's a case of scratch my back and I'll scratch yours....if not then....I'll scratch your face.

-- Will (righthere@home.now), July 07, 2000.

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