Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (14449)	6/14/2000 4:30:00 PM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 15132

No Proposal So Far' for Higher OPEC Output, Says Naimi, in an Interview WithPetroleum Argus LONDON, June 14 /PRNewswire/ -- Market fundamentals appear sound, but Saudi Arabia is not ruling out an increase in OPEC production next week, Saudi Arabian oil minister Ali Naimi has told Petroleum Argus in an exclusive interview. "As of now, data shows that the market is in balance and that the fundamentals are sound," Naimi told Argus in Riyadh. "The data coming out shows that the market is in reasonable balance. Demand, as projected in earlier reports, seems to be moderating," he said. But Riyadh is keeping its options open ahead of next week's OPEC meeting. "We need to consult jointly to decide if an increase is warranted or not," Naimi says. "There is no preclusion. However, there is no proposal so far." The kingdom's caution is perhaps a reflection of past experience. OPEC's fateful agreement to increase output in Jakarta in November 1997 helped precipitate a price crash that saw crude dip below $10/bl. "There's an option of doing nothing. Yet there is an option of triggering a mechanism of 500,000 b/d, or will we look at higher numbers?" Naimi says. Crude supplies are only a secondary factor behind high crude prices, Naimi says. "I believe the primary reason is product shortages, and that seems to be pulling the market up. There is also no question that although the crude oil inventory is building up, it's not at the level that it used to be earlier." The kingdom believes the $22-28/bl target range for its pricing mechanism is "appropriate", Naimi says. But "we have an OPEC meeting occurring in the next 10 days. It would be imprudent to trigger a mechanism when we have a meeting to discuss the market situation in detail and take hopefully a better decision."