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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (185843)	3/30/2004 4:36:19 PM
From: tejek	Respond to of 1576890

March 31, 2004 Saudi pledge to reduce output lifts oil price By Carl Mortished, International Business Editor OIL markets were on tenterhooks yesterday as two key Opec producers broke ranks with Saudi Arabia ahead of today’s meeting in Vienna where the cartel has promised a swinging cut in crude production. The price of Brent crude gained 75 cents to $32.49 in London after Ali al-Naimi, the Saudi Oil Minister, reaffirmed his commitment to a production cut. Libya and Nigeria appeared to back the Saudi position but the United Arab Emirates and Kuwait, traditional allies of Saudi Arabia, yesterday called for the planned one million barrel per day quota reduction to be delayed. Sheikh Ahmad Fahd al-Sabah, the Kuwaiti Energy Minister, called for a postponement of the cut, scheduled to begin on Thursday. “Kuwait wants to see Opec members continue to reduce overproduction and to delay the decision to cut one million barrels of production,” he said. Ali al-Naimi blamed speculators and US refining capacity for the strength of the oil price. “Throwing more oil on the market, because of prices where they are today, would be destructive,” he said. “That would make a glut and there is already a surplus on the market.” Divisions in the Opec camp reflect widespread unease about the strength of the price of crude. The oil price reached a 13-year high earlier this month despite rampant quota breaches by Opec producers and an anticipated slowdown in demand this spring. Record petrol prices in the United States and speculative bets by hedge funds have fed the flames in the oil market. Oil analysts and forecasters are divided over the state of the market. The Centre for Global Energy Studies, a respected energy market forecaster, has accused Opec of failing to recognise a rare step-change in oil demand, in part due to rampant growth in demand in China. Adam Sieminski, of Deutsche Bank, said that there may be a surplus of one million barrels per day on the market, but judging the supply/demand balance on the basis of historic numbers is difficult. He said: “Opec is driving a racing car while looking in the rear-view mirror. I would say they will announce they will cut and then do whatever they like. “If prices go down, they will cut production. If prices stay high, why would they cut?” business.timesonline.co.uk