OPEC Warns Against More Reserve Releases
Sep 24 12:53pm ET
CARACAS, Venezuela (Reuters) - OPEC Secretary-General Rilwanu Lukman cautioned industrialized nations on Sunday against following the U.S. lead in releasing strategic oil reserves to counter high prices.
``Those who hold reserves should be careful when they use them so they can be there for real emergencies,'' Lukman told a news conference ahead of the oil producer group's summit this week in Caracas.
President Clinton decided on Friday to release 30 million barrels from the nation's Strategic Petroleum Reserve over 30 days to prevent heating oil supply disruptions this winter.
``It's not our business to interfere with what industrialized countries do with their reserves, but I don't know whether the current situation could be regarded as an emergency. It's not quite an appropriate use for it,'' Lukman said.
U.S. Energy Secretary Bill Richardson has said the United States was prepared to take further action if necessary to calm oil prices, which last week hit their highest level since the Gulf War. Prices have fallen sharply as the United States signaled it would release reserves, and European leaders called for measures to ease high prices.
Lukman said he hoped that the United States' move along with an 800,000 barrel per day increase OPEC will implement beginning October 1, would moderate prices, but he said the group would work to avoid prices falling back too far.
``We are not going to get pushed into putting more oil into the market than it needs,'' he said. ``People forget that prices have come up from just $10 a barrel two years ago. No one felt sorry for OPEC then.''
OPEC oil ministers meeting on Tuesday would not emerge with any new supply decision, Lukman said, adding that the group had the option to raise supply at the end of October under its price stability mechanism.
This week's summit, only the second in the group's 40-year history, will help OPEC's efforts to work together to manage oil prices, he said.
``It could not have come at a better time for our organization. It will go a long way to strengthen us,'' he said.
He reiterated that OPEC believed high taxes in consuming countries, lack of refining capacity and oil market speculators were just as responsible for current high prices as a shortage of crude oil.
``It's all very well to blame OPEC. We are a very convenient scapegoat,'' he said. ``We have taken steps to alleviate high prices and we believe prices will come down to a level us and our customers are happy with. People expect this to happen in five minutes. Time is required.''
Strong prices were necessary to make sure oil producers invested enough in exploration and production to meet future demand, Lukman added. ``Without good prices we may well end up with a shortage of capacity in the future,'' he said. |
