Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: BigBull who wrote (72923)	9/11/2000 8:54:10 AM
From: Terry D	Read Replies (1) of 95453

B] WRAP: Oil prices fall slightly as OPEC agrees output hike Updated Mon 9/11/2000 07:20 EDT By BridgeNews London--Sept. 11--Crude oil prices were only modestly lower in London after OPEC agreed to raise output, due to uncertainty over whether the increase will be sufficient to dampen soaring prices. Oil ministers at the Organization for Petroleum Exporting Countries meeting in Vienna agreed Sunday to increase the group's production of crude oil by 800,000 barrels per day from Oct. 1 in response to the recent climb in oil prices to levels last seen during the Gulf War in 1991. Brent oil futures were down 38 cents at $32.40 per barrel in London by mid-morning. But energy market players said losses might be short-lived as a result of uncertainty over how much new oil will actually come to the market. "According to some reports, OPEC overproduced by 700,000 barrels per day in August, so this hike only puts 100,000 barrels into the market," said one broker. "The initial reaction is positive, but how long will that last?" The increase will be tacked on to output quotas agreed by the cartel in June, bringing the new production target for the 10 OPEC countries besides Iraq to 26.2 million barrels. Saudi Arabian Oil Minister Ali Naimi said Monday the initial fall in world oil markets in reaction to OPEC's decision meant that prices were "moving in the right direction." Naimi insisted the full amount of increased oil production would appear in the market. The minister downplayed suggestions that that time gap and the 45-day period needed to bring oil from fields to customers would prove too long to cool market prices. "This isn't the way the market looks at it. As soon as analysts see the oil is coming, prices are affected," he said. United Arab Emirates Oil Minister Obaid ibn Saif al-Nassiri said the output hike endorsed Sunday would help "restore balance" to the market. However, he told the Doha-based Al-Jazira satellite television channel that the crude shortage had been "exaggerated" by oil consumers as an excuse for soaring prices. End By BridgeNews [slug: OIL-OUTPUT]

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