Saudi Oil Minister Expects Easy Agreement at OPEC Meeting
September 10, 2000 - 0:0
TEHRAN Saudi Arabia's Oil Minister Ali al-Naimi said Saturday he expected it would be easy to reach an agreement on raising oil production at today's OPEC meeting of oil ministers in Vienna.
"It's going to be easy to reach an agreement," he told a small group of reporters ahead of a meeting of the 11-member cartel today.
According to an AFP report, Al-Naimi sought to play down differences between Saudi Arabia, OPEC's heavyweight producer, and the other members of the Organization of Petroleum Exporting Countries (OPEC).
"We don't want to dictate. We want cohesion," he told the reporters, including AFP, accompanying him on an early morning jog in Vienna, Today's meeting is under intense pressure to agree a significant increase in production to help ease oil prices, which soared to 10-year highs of over $35 this week.
Saudi Arabia, the only OPEC member with any substantial spare capacity, is reportedly ready to increase production by 700,000 barrels a day, while others who cannot produce any more are more reluctant.
Meanwhile, UN Secretary General Kofi Annan warned Friday that high oil prices will hurt the world economy, especially poor countries that need to import oil.
While oil exporters may profit from the high prices, those that depend on oil imports would suffer, he said in a statement.
Annan said he was "concerned at the potential impact of high oil prices on the world economy", DPA reported He noted that sharp increases in oil prices have triggered recessions in the past, hurting the economies of both importers and exporters.
High oil prices may inflict "adverse effects" on oil importing countries, some of which have just recovered financial crises.
"Developing countries are less able to substitute oil by other energy sources," he said. "The increasing burden would result in balance of payments problems and a reduction in other imports and spending." He called on oil exporting countries to look at the long-term effects of high oil prices, urging them to be "especially sensitive to the impact of their decisions on the world economy and particularly the poorest countries".
"It's going to be easy to reach an agreement," he told a small group of reporters ahead of a meeting of the 11-member cartel today.
According to an AFP report, Al-Naimi sought to play down differences between Saudi Arabia, OPEC's heavyweight producer, and the other members of the Organization of Petroleum Exporting Countries (OPEC).
"We don't want to dictate. We want cohesion," he told the reporters, including AFP, accompanying him on an early morning jog in Vienna, Today's meeting is under intense pressure to agree a significant increase in production to help ease oil prices, which soared to 10-year highs of over $35 this week.
Saudi Arabia, the only OPEC member with any substantial spare capacity, is reportedly ready to increase production by 700,000 barrels a day, while others who cannot produce any more are more reluctant.
Meanwhile, UN Secretary General Kofi Annan warned Friday that high oil prices will hurt the world economy, especially poor countries that need to import oil.
While oil exporters may profit from the high prices, those that depend on oil imports would suffer, he said in a statement.
Annan said he was "concerned at the potential impact of high oil prices on the world economy", DPA reported He noted that sharp increases in oil prices have triggered recessions in the past, hurting the economies of both importers and exporters.
High oil prices may inflict "adverse effects" on oil importing countries, some of which have just recovered financial crises.
"Developing countries are less able to substitute oil by other energy sources," he said. "The increasing burden would result in balance of payments problems and a reduction in other imports and spending." He called on oil exporting countries to look at the long-term effects of high oil prices, urging them to be "especially sensitive to the impact of their decisions on the world economy and particularly the poorest countries".