Saudi Worried About Oil Fall but Too Early to Act
December 12, 2000 - 0:0
DUBAI OPEC power Saudi Arabia said on Monday it was concerned about the recent steep oil price decline, but that any suggestion of curbing OPEC output at this time was premature.
Saudi Arabia is concerned about last week's sharp price decline, but oil prices are still within OPEC's desired ($22-28) price range," a Saudi Oil Ministry official told Reuters. "Any suggestions about decreasing production at this time are premature.
" The Saudi oil official reaffirmed that the kingdom remains strongly committed to a $25 per barrel OPEC basket price. "Saudi Arabia's commitment to a price of about $25 is strong beyond doubt," he said. "But it is still too early to take action to defend that price." The Saudi official said it was also too early to say what decision OPEC would take when the cartel next meets on January 17 in Vienna. "It is still possible that the price might go up again," the official said. Prior to the Vienna session, the kingdom will be keeping a close eye on oil market developments.
"We will look closely at the changes in the oil market and take action when it is needed," the Saudi official said. But he made clear the kingdom was opposed to extreme oil market volatility.
"We are against wide oil price swings -- either up or down," he said. "This is destabilizing for the market and not helpful for either producers or consumers." Meanwhile, Iraq has officially notified the United Nations of its agreement to an extension of the country's oil-for-food deal for a ninth six-month period, the official Iraqi News Agency (INA) said on Monday. It said Foreign Minister Mohammed Saeed al-Sahaf had relayed Iraq's acceptance in a letter to UN Secretary General Kofi Annan in which he reiterated Baghdad's criticism of the program.
"But so that our behavior is not seen as negative and to expose further those with bad intentions, Iraq has agreed to extend the memorandum of understanding for another six months," INA quoted the letter as saying. The UN Security Council voted unanimously on December 5 to renew for six months the humanitarian program, a lifeline for 23 million people living under 10-year-old sanctions imposed after Iraq invaded Kuwait in August 1990.
(Reuter)
Saudi Arabia is concerned about last week's sharp price decline, but oil prices are still within OPEC's desired ($22-28) price range," a Saudi Oil Ministry official told Reuters. "Any suggestions about decreasing production at this time are premature.
" The Saudi oil official reaffirmed that the kingdom remains strongly committed to a $25 per barrel OPEC basket price. "Saudi Arabia's commitment to a price of about $25 is strong beyond doubt," he said. "But it is still too early to take action to defend that price." The Saudi official said it was also too early to say what decision OPEC would take when the cartel next meets on January 17 in Vienna. "It is still possible that the price might go up again," the official said. Prior to the Vienna session, the kingdom will be keeping a close eye on oil market developments.
"We will look closely at the changes in the oil market and take action when it is needed," the Saudi official said. But he made clear the kingdom was opposed to extreme oil market volatility.
"We are against wide oil price swings -- either up or down," he said. "This is destabilizing for the market and not helpful for either producers or consumers." Meanwhile, Iraq has officially notified the United Nations of its agreement to an extension of the country's oil-for-food deal for a ninth six-month period, the official Iraqi News Agency (INA) said on Monday. It said Foreign Minister Mohammed Saeed al-Sahaf had relayed Iraq's acceptance in a letter to UN Secretary General Kofi Annan in which he reiterated Baghdad's criticism of the program.
"But so that our behavior is not seen as negative and to expose further those with bad intentions, Iraq has agreed to extend the memorandum of understanding for another six months," INA quoted the letter as saying. The UN Security Council voted unanimously on December 5 to renew for six months the humanitarian program, a lifeline for 23 million people living under 10-year-old sanctions imposed after Iraq invaded Kuwait in August 1990.
(Reuter)