-Caveat Lector- <A HREF="http://www.ctrl.org/"> </A> -Cui Bono?- Copyright 2000 InterPress Service, all rights reserved. Worldwide distribution via the APC networks. *** 02-Mar-0* *** Title: PETROLEUM: OPEC Meeting to Decide Fate of Soaring Prices By Luis C˘rdova CARACAS, Mar 2 (IPS) - Rising oil prices, currently nudging 30 dollars per barrel, convinced the world's three largest producers Thursday to increase the supply on the international market in order to keep prices in check, but anxiety about the future direction of prices will go on for another 25 days, until OPEC delegates meet in Vienna. ''There is consensus on the need to increase production this year,'' commented Venezuela's Energy minister, AlĄ RodrĄguez, as he left a crucial meeting with his colleagues Luis Tllez, from Mexico, and AlĄ Naimi, from Saudi Arabia. The three met Thursday in London to assess the impacts of the current high oil prices. But RodrĄguez, calling from London, confirmed on a Caracas radio programme that the world must wait until the Organisation of Petroleum Exporting Countries (OPEC) meets before it will know how much the crude supply will be expanded and when this additional quantity will make its way to the market. Saudi Arabia, Mexico and Venezuela are seen as the authors of the OPEC agreement to restrict petroleum production, which led to the ongoing price increases that began in March 1999 after the price per barrel hit its lowest point in two decades. ************** [These three countries are American puppet states. Particularly Oil puppet states. If the price of oil goes up, it is not an act of god. They are gouging the most dependent users of petroleum while we still have money in our pockets. Bill Richardson, the US Secretary of energy, gave the ok to raise oil prices. Free market my ass. When capitalists control vital commodities, we are at the mercy of the merciless. --J2] **************** ''The commitment we made was to stabilise the market,'' stated RodrĄguez, who will now initiate a series of talks with other OPEC ministers. Venezuela and Saudi Arabia are founding members of the cartel, and worked with Mexico and Norway to push for last year's price recovery. On the agenda for the OPEC conference is the decision on whether the member nations will moderate or deactivate their strategy of oil production quotas, or extend the restrictions on the world supply for a time longer. When the strategy was decided last March, oil prices had suffered an important decline throughout the previous year, which had serious negative impacts on the economies of the petroleum exporting nations. West Texas Intermediate (WTI), a US-produced light crude, sold at 12.97 dollars per barrel during the first quarter of 1999, and in the last two weeks reached 30 dollars. According to international reports, it has surged beyond that watermark in recent days. For the North Sea Brent oil company, the 11.24 dollar average barrel price during 1999's first quarter reached more than 27 dollars this week. OPEC saw its oil prices jump from 11 dollars a year ago to 26.7 per barrel by Feb 27, according to Venezuela's Energy Ministry. The strong upswing in prices during the year made the price issue a problem for oil importing countries. Several weeks ago, the United States began to insist on the need for measures to moderate petroleum prices. The three countries that met Thursday in London, and other oil producing nations such as Norway and Kuwait, were contacted by the US Energy Secretary, Bill Richardson, and the parties backed the general principle that they must work to ensure the stability of the world oil market. ''The ministers agreed that an adequate supply of petroleum at reasonable prices is of crucial importance,'' stated the official communique emitted in Venezuela following the RodrĄguez-Richardson meeting Tuesday in the British capital. The Venezuelan official underscored the need to prevent market volatility and repeatedly stated it would be necessary to implement corrective measures if the prices go above 30 dollars per barrel. But he has also stated that this South American nation continues to back OPEC decisions and awaits the organisation's decision to be made March 27. The Saudi minister Naimi agreed with the need to stabilise the market, but only if it is done within the framework established by OPEC. The OPEC meeting later this month promises to be turbulent, despite the flexible attitude of some of its members, such as Saudi Arabia, Kuwait or Venezuela. Others, including Iran and Algeria, have indicated they favour extending the quota strategy until mid-year, saying they expect a seasonal drop in demand. According to data evaluated by Venezuelan analysts, the current world demand - 77 million barrels of oil per day - is met with a supply of 75 million barrels, which leaves a deficit of two million barrels daily. Petroleum prices received additional stimulation from the recovery of the world economy and the reduced oil reserves of the planet's largest consumer, the United States, where inventories are running dangerously low, warned Richardson. RodrĄguez assured on several occasions that Venezuela is not interested in jeopardising the economies of oil-importing nations, which are the nation's customers. The government has also stressed that abrupt oil price increases in the past have been followed by sharp plunges, which have had devastating consequences for Venezuela's economy. The Venezuelan Energy minister emphasised Thursday that the eventual increases in oil production would be ''progressive, not instantaneous.'' (END/IPS/tra-so/lc/ag/ld/00) Origin: Montevideo/PETROLEUM/ ---- [c] 2000, InterPress Third World News Agency (IPS) All rights reserved <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. Substancenot soap-boxing! These are sordid matters and 'conspiracy theory'with its many half-truths, misdirections and outright fraudsis 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. 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