February 24, 2000
Gulf Oil Ministers Said to Reach
Deal on Gradual Production Increases
Associated Press
DUBAI, United Arab Emirates -- Persian Gulf oil ministers have agreed to
increase production to stabilize international markets, a senior United Arab
Emirates oil official said Thursday.
Oil ministers from the Gulf Cooperation
Council, which comprises Organization of
Petroleum Exporting Countries members
Saudi Arabia, Kuwait and the U.A.E. and non-OPEC Oman and Bahrain,
met in Riyadh Wednesday, after which an official statement was issued that
hinted at maintaining "market stability" without mentioning specifics.
"All the ministers were in agreement during the meeting," the official said
Thursday, speaking on condition of anonymity. "Figures were discussed
and more discussions will be held before a specific figure is agreed upon."
The U.A.E. official said a production increase will be gradual and will be in
the range of 1.5 million barrels a day. "After that, it's the market's call," he
said.
Saudi Oil Minister Ali Naimi is scheduled to meet March 2 with Mexico
and Venezuela to discuss whether to increase production. Mr. Naimi's
talks with his Mexican and Venezuelan counterparts will further clarify
matters, the U.A.E. official said.
Despite reports of U.S. pressure on Gulf states and members of OPEC to
raise production, the visit of U.S. Energy Secretary Bill Richardson to
Kuwait and Saudi Arabia wasn't discussed during the meeting, the U.A.E.
official said.
Mr. Richardson, who arrived in Kuwait on Thursday, has said that the
U.S., the world's largest oil market, wants prices to come down. He was
scheduled to travel to Saudi Arabia on Friday.
In Cairo, Egypt, Mr. Richardson said Wednesday that he was planning
"friendly, positive" talks with Kuwaiti and Saudi officials. "I'm not going
there to pressure anybody," he said.
Mr. Richardson refused to say what oil price he was seeking, saying price
should be dictated by the market.
Officials from Saudi Arabia, the world's largest oil exporter, say their
government favors prices of about $20 to $25 a barrel. Before
Wednesday's meeting, U.A.E. oil minister Obeid bin Saif Al-Nasseri said
he wanted a price in the same range.
OPEC oil ministers are due to meet in Vienna on Mar. 27 to review oil
output cut agreements, which expire at the end of March.
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