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To: Think4Yourself who wrote (82424)	12/21/2000 10:38:54 PM
From: gpphantom	Respond to of 95453

(COMTEX) B: Falling Prices May Force OPEC to Cut Output, Warns President CARACAS (Dec. 21) XINHUA - OPEC (the Organization of Petroleum Exporting Countries) President Ali Rodriguez Araque warned Wednesday that the group's oil output might be cut if the oil prices keep falling. Ali Rodriguez, who will take up the post of OPEC secretary- general on January 1 after his current term expires on December 31, said that there currently exists an oversupply in the oil market, and global oil inventories have already exceeded the equivalent of 82 days of demand. "Just now there's an oil oversupply and inventories have significantly grown, whereby prices start to go down," said Rodriguez, who is also Venezuela's minister of energy and mines. He pointed out that OPEC had significantly opened valves this year and even increased its daily production by about 4 million barrels. Oil prices rose to their highest level earlier this year since the Gulf War in 1991. To meet the demand of oil consuming countries, OPEC raised its oil output four times this year in order to bring down the flying oil prices. Rodriguez warned that OPEC would cut its oil output by over 500, 000 barrels daily should the prices fall below 22 dollars per barrel. The price of OPEC's oil exports dropped to 22.26 dollars per barrel on Wednesday, which is at the edge of the lower limit of OPEC's 22-28 dollars per barrel target range. Rodriguez also said he would like to discuss with U.S President- elect George W. Bush on problems such as speculation in the oil market, transport and refining in the United States, which affects the price of refined products. Bush said on Wednesday that the best way to ease tension in the oil market is to work with OPEC so as to carry out a respectable energy policy. Copyright XINHUA NEWS AGENCY * end of story *