thr 025 Oil-OPEC-Storm 'Big Storm' To Hit Oil Market, Says Former Algerian Oil Minister London, Nov 17, IRNA -- The current strength of the oil market will not last much longer and tougher times, reminiscent of a 'storm', are ahead but nothing that OPEC cannot handle, said the former Algerian Oil Minister, Nordine Ait-Laoussine.

Since the announcement last Sunday that OPEC will not raise its output further until it has another meeting in January 2001, oil prices have strengthened with Brent crude passing though the Dlrs 34 mark. But experts believe the situation is temporary as prices seem to be moving according to sentiment rather than fundamentals, and Ait-Laoussine, now president of Nalcosa, a Swiss-based energy consulting firm, is one of them. "It is clear that we are producing too much oil," he told IRNA during his visit to London to attend the 21st Oil and Money conference. Current prices are more a "reflection of market sentiment than fundamentals," he said, but predicted the situation will soon change. "There is a big storm coming," he warned but added OPEC has recognised the danger and is "getting ready for it" and "has the capability to deal with it."

Closer links between Iran and Saudi Arabia, the world's first and fourth largest producers of oil, would in his view prove decisive when the market became weaker but another important factor is removal of uncertainty over the position of OPEC's future Secretary General. "Now that we have a new Secretary General, that is going to strengthen the organisation," he said, referring to the selection of Ai Rodriguez Araque to replace Rilwanu Lukeman. This, he thought would have posed a risk to OPEC's recent "cohesion," which he had referred to in his speech to the 400 delegates attending the conference on Tuesday. In his speech Ait-Laoussine said the OPEC is now a "new", "moremature and experienced" organisation, stressing "we are not dealing with the same OPEC." In contrast to his earlier rather sceptical views, he told IRNA he has a more positive opinion about OPEC. "I have confidence in the organisation." JA/JH END ::irna 17/11/2000 17:57

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-- Martin Thompson (mthom1927@aol.com), November 17, 2000