<Saudi paper accuses U.S. of waging war on OPEC
From:Reuters
Thursday, 12th February, 2004
RIYADH (Reuters) - A leading Saudi Arabian newspaper says the United States has no right to warn OPEC against cutting oil output and accuses Washington of waging war on the cartel under the guise of protecting the global economy.
OPEC, led by Saudi Arabia, on Tuesday announced a surprise reduction in crude supplies from April, drawing a caution from the United States that it risked stunting world economic growth.
The daily, al-Riyadh, said OPEC's decision was aimed at balancing supply and demand and that oil producers have made sacrifices to protect the global economy, including opening the taps during the U.S.-led war on Iraq to make up for a loss in Iraqi crude production.
"The U.S. media campaign over production cuts is accompanied by U.S. problems in Iraq, high unemployment, rising debts and war costs and the elections battle, and the only scapegoat is accusing oil producers of harming the U.S. economy," the Arabic-language newspaper said on Thursday.
"America...made no secret of its strategy to rob OPEC of the right to protect its interests," the daily said, adding that by encouraging oil exploration and production in non-OPEC states, Washington was waging "an open war on OPEC and oil producers, especially Arab countries which represent the strength of OPEC".
The Organisation of the Petroleum Exporting Countries, which controls half the world's oil trade, agreed to cut its official output quota by one million barrels per day (bpd), and to eliminate 1.5 million bpd of leakage above existing quotas.
In a strong warning to the cartel U.S. Treasury Secretary John Snow said any decrease in crude oil output by OPEC would be "regrettable", and would effectively be a tax on U.S. consumers.
Saudi Arabia, the world's largest oil exporter, said action was needed to prevent a price crash as demand slackens and world oil inventories build. The kingdom's oil minister, Ali al-Naimi, re-emphasised Riyadh's commitment to OPEC's central $25 target.
Another Saudi newspaper, Okaz, said OPEC's decision was in the interest of world economic growth because it would guarantee smooth oil supplies and fair prices.
"This decision expresses OPEC's independence... and will also boost confidence in the economies of member states," it added.
Oil income make up around 70 percent of Saudi state revenue and around 40 percent of the country's gross domestic product.>
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