Saudis to raise production as revolt on prices brings France to a halt Larry Elliott, Charlotte Denny and Jon Henley in Paris Friday September 8, 2000 Bill Clinton last night won a pledge from the world's biggest oil producer, Saudi Arabia, to halt the relentless rise in the price of crude which yesterday brought France to a halt and prompted fears of a global recession. As UK petrol firms responded to the 10-year-high in oil prices by putting up fuel prices by 2p a litre, crown prince Abdullah said Saudi Arabia would raise production by 700,000 barrels a day in an effort to ease pressure on the west. However, oil experts said the 3% increase in output would not be enough to bring crude oil prices to below $30 a barrel and motoring organisations warned that British drivers could soon expect to pay �4 for a gallon of petrol. Speaking at the UN millennium summit in New York, President Clinton said he had put pressure on Saudi Arabia to take action ahead of Sunday's meeting of Opec - the 11-member oil producers' cartel. "I told him I was very concerned that the price of oil is too high, not just for America but for the world," said Mr Clinton after his meeting with the crown prince. "If it was to cause a recession in any part of the world that would hurt the oil producing countries." Large parts of France ran out of fuel yesterday as hauliers and farmers, more determined than ever to win big fuel tax cuts from the government, continued their four-day blockade of oil refineries and depots. Angry farmers, already active on most of the 120 blockades up and down the country, successfully blocked the entrance to the Channel tunnel with their tractors, triggering scuffles with British tourists. Around 50 British holidaymakers mounted a counter-blockade by blocking a lane being used by the authorities to allow French cars to trickle past the barricades, and threatened to cut off the main A16 motorway if they were not allowed to get through the blockade and go home. Under police escort, a convoy of British cars and coaches was eventually allowed through in the late afternoon. A British police sergeant, who was part of the convoy but asked not to be named, said: "It seems we managed to outmanoeuvre them with a bit of British courage and some cunning. We played them at their own game and it worked. In the end it was quite a fun victory for all." Another convoy member, Frank Davidson, 49, said: "This was as sweet a victory as Wellington over Napoleon at Waterloo. They didn't like it when we put up a fight." While talks resumed late in the afternoon between the French transport minister, Jean-Claude Gayssot, and the two main hauliers' federations, the government reiterated that it would go no further than the 15% tax cut, worth �100m, it offered on Wednesday. Meanwhile, the European commission threatened legal action if the free movement of goods within the EU was disrupted. As the protest spread, the hauliers, farmers, ambulance drivers and coach firms were joined by thousands of taxi drivers in massed "go-slow" processions that brought traffic to a halt in a dozen cities and caused motorway tailbacks. At least three regional airports reported they would be out of aviation fuel by this morning. Wholesalers at the main Rungis market outside Paris said supplies of fresh fruit and vegetable were beginning to be affected and 80% of the country's petrol stations were either dry, subject to rationing of �15 per vehicle, or had been requisitioned for emergency service use only. In the financial markets yesterday, the price of a barrel of crude oil eased back from a peak of $34.50 to $33.91. However, dealers said that most of the Saudi production increase had been anticipated by the markets and that prices were not likely to fall markedly. They said Saudi Arabia was the key player in the crisis because it was the only Opec nation with the spare capacity to pump the extra oil needed to bring prices under control. But it can expect opposition from other Opec members who are enjoying extra revenues from the price surge from under $10 a barrel at the start of last year. Lawrence Eagles, oil analyst at the City firm GNI Securities, said a harsh winter could boost demand by an extra 500,000 barrels a day, pushing prices still higher."You can't rule out $40 a barrel if Opec aren't prepared to act," he said. _______________________________________________ Crashlist resources: http://website.lineone.net/~resource_base To change your options or unsubscribe go to: http://lists.wwpublish.com/mailman/listinfo/crashlist
