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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsnow who wrote (49734)	2/27/2000 10:16:00 PM
From: Alex	Read Replies (1) \| Respond to of 116790

US warns unstable oil prices threaten the world economy By Robert Corzine in London and Valeria Cristione in Oslo - 27 Feb 2000 21:35GMT Bill Richardson, the US energy secretary, said recent sharp movements in oil prices posed a threat to the world economy. His remarks in Oslo came as oil markets look set for another volatile week, with the US continuing intense diplomatic efforts to persuade leading petroleum producers to increase exports in response to rising prices. Last week oil prices in the US topped $30 a barrel for the first time since the Gulf war. Mr Richardson has spearheaded the diplomatic efforts, with visits to a number of oil-producing countries including Saudi Arabia on Saturday and Norway on Sunday. Government officials in the US - the world's biggest consumer of oil - have become increasingly alarmed in recent weeks about the steady rise in oil prices and a continuing sharp decline in stocks, which are at their lowest point for a decade. There are fears that even a relatively modest supply disruption could trigger yet another sharp increase in prices, given such low inventory levels. Mr Richardson said on Sunday that there was a shared view with oil producing countries that the recent volatility in petroleum prices "hurts both consuming and producing nations and can hamper the world economy". In a statement after Mr Richardson met officials in Riyadh, Saudi Arabia - the biggest oil producer and exporter - said the kingdom "will continue to review oil supply and demand levels to ensure market stability, prevent oil price volatility and avoid harming the world economy." Mr Richardson said he was "pleased and encouraged" by his talks in recent days with both Kuwait and Saudi Arabia. But he declined to say whether the talks included oil price targets or details of the size and timing of any increase in output that might be put to the Organisation of Petroleum Exporting Countries (Opec) when it next meets at the end of March. "I don't want to get into numbers or timelines," said Mr Richardson. "Opec needs to make that decision. I'm interested in replenishing low inventories and want stable and moderate prices." On Sunday he met Marit Arnstad, Norway's oil minister, to express US concerns that the tightening supply in world oil markets could feed inflation and slow economic growth. Ms Arnstad said Norway -a non-Opec producer and the second biggest exporter after Saudi Arabia - will not decide until the end of March whether to continue the current 200,000 barrel per day cut in output it ordered last year to help reverse then sagging oil prices. "This was not a negotiation between Norway and the US," said Ms Arnstad. "It was a dialogue on the market situation. It is a concern of Norway to create a long-term stability that can balance the interests of both producers and consumers in the market. High prices are a threat to stability in this market." Mr Richardson's visit to Norway was the second in the past three weeks. "Norway is a big player and an important player in this market," he said. "I'm here because Norway is a good friend and ally on energy issues." markets.ft.com