-Caveat Lector- <A HREF="http://www.ctrl.org/"> </A> -Cui Bono?- -------- Original Message -------- Subject: OIL: Hints of Supply Hikes Fail to Drive Down Prices Date: Mon, 13 Mar 2000 21:40:31 -0600 (CST) From: IGC News Desk <[EMAIL PROTECTED]> Organization: ? To: undisclosed-recipients:; Copyright 2000 InterPress Service, all rights reserved. Worldwide distribution via the APC networks. *** 10-Mar-0* *** Title: OIL: Hints of Supply Hikes Fail to Drive Down Prices By Luis C�rdova CARACAS, Mar 10 (IPS) - Venezuela's Energy Ministry reported Friday a more than one dollar rise in oil prices this week, which indicated the market's apparent indifference to signals from the Organisation of Petroleum Exporting Countries (OPEC) of willingness to begin to ease production caps. OPEC will make its final decision on production quotas on Mar 27 in Vienna, at a meeting anxiously awaited by traders in a market that has posted the highest prices seen since the 1990 Gulf War. The price of the US benchmark West Texas Intermediate (WTI) has held steady above 30 dollars a barrel since late February, followed closely by Brent, which also shot above the 30-dollar mark earlier this month. Several OPEC members like Saudi Arabia, Venezuela and Kuwait have expressed interest in achieving a stable market, and thus agree that production should be gradually increased in order to meet demand and reduce the pressure driving up prices. Even Iran, which initially wanted to extend the production cutbacks for a few more months, has apparently come round to the idea of boosting supply, according to reports in Caracas. Mexico, which a year ago agreed with OPEC on the need for cutbacks to shore up slumping prices, has recently expressed its support for the idea of lifting the strategy of production quotas. Several OPEC spokespersons have said they would be satisfied with a price of 20 to 25 dollars a barrel. But prices are currently far above that level, as indicated by a weekly bulletin on price developments issued by Venezuela's Energy Ministry, which put this week's average WTI price at an average of 32.30 dollars per barrel, five dollars higher than January's average of 27.15 dollars. In March 1999, when the strategy of cutbacks by OPEC and non- OPEC members began to be applied, the price of WTI stood at 10 to 12 dollars a barrel - which means its price has risen threefold in the past 12 months. Brent, meanwhile, sold this week at an average of 30.34 dollars a barrel, compared to 29.21 dollars last week and 25.26 dollars in January. The OPEC reference basket stood at 29.21 dollars this week, 1.30 dollars above last week's price, while it sold for 24.58 dollars a barrel in January. Venezuela's basket of crudes fetched 28.90 dollars this week, 1.17 dollars above last week's price, and sold in January for 23.37 dollars - a far cry from the March 1999 price of seven dollars a barrel. But the success of the strategy designed to drive up prices has caused serious problems for consumer countries, which have insisted on the need for production hikes in order to bring prices down to a more moderate level. US Energy Secretary Bill Richardson met with his counterparts from oil-producing nations, including several OPEC members, to discuss agreements on production increases in order to meet the deficit in supplies, today estimated at two million barrels per day. But while the signals of willingness to increase production did not drive prices down, they did heighten expectations regarding the decisive meeting OPEC will hold towards the end of the month. OPEC countries that have already announced their support for increasing production have clarified that a final decision by the cartel will not be reached until the Vienna meeting. Others, like Algeria and Libya, have backed the idea of extending the strategy until the middle of the year, a period when prices tend to fall. At a meeting on oil in Miami, Venezuelan Energy Minister Al� Rodr�guez commented Thursday that he also expected demand to fall by 2.5 million barrels, a factor that could weigh heavily when it comes to increasing supplies. (END/IPS/tra-so/lc/dm/sw/00) Origin: Montevideo/OIL/ ---- [c] 2000, InterPress Third World News Agency (IPS) All rights reserved May not be reproduced, reprinted or posted to any system or service outside of the APC networks, without specific permission from IPS. This limitation includes distribution via Usenet News, bulletin board systems, mailing lists, print media and broadcast. For information about cross- posting, send a message to <[EMAIL PROTECTED]>. For information about print or broadcast reproduction please contact the IPS coordinator at <[EMAIL PROTECTED]>. <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are not allowed. Substance�not soap-boxing! These are sordid matters and 'conspiracy theory'�with its many half-truths, misdirections and outright frauds�is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://home.ease.lsoft.com/archives/CTRL.html http:[EMAIL PROTECTED]/ ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
