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To: marc chatman who wrote (21314)	5/4/1998 10:46:00 AM
From: Captain James T. Kirk	Respond to of 95453

Monday May 4, 2:56 am Eastern Time Oil minister says Iran willing to cut output-paper (adds detail) TEHRAN, May 4 (Reuters) - Iran Oil Minister Bijan Namdar Zanganeh said in remarks published on Monday that global output cuts so far were not enough to stabilise weak oil prices and Iran was willing to cut production again. ''The minister said that the decrease in production worldwide wasn't sufficient to stabilise oil prices. He added that Iran was willing to reduce its output beyond the 140,000 barrels per day agreed to at the Riyadh meeting of March 22,'' the Iran Daily newspaper said. OPEC states Venezuela and Saudi Arabia, along with non-OPEC Mexico, were instrumental in forging the so-called ''Riyadh Pact'' that aimed to shave up to two million barrels per day (bpd) from world supplies. Ministers of the Organisation of Petroleum Exporting Countries ratified the pact by agreeing to cut the 11-member group's output by 1.245 million bpd, its first cut in a decade. But Zanganeh said both OPEC and non-OPEC countries would again have to come up with a collective framework to restore stability and boost oil prices, which this year have fallen to their lowest level for more than nine years. OPEC members which were capable of sharply raising production ''in the near future'' would have greater say in the organisation and ''this will inevitably lead to a new quota system,'' he added. ''The minister noted that there might be fundamental changes in the quota systems, as countries like Venezuela ignore their original allotments,'' the Iran Daily reported. Comments by OPEC president and UAE oil minister Obeid bin Saif al-Nasseri, together with increased tension between Iraq and the United Nations and petroleum inventory draws in the key consuming states have helped lift prices a little recently. But Zanganeh remained cautious. ''It is reasonable to assume that the price of oil will continue to hover around $12 a barrel,'' he said. OPEC ministers, who represent 40 percent of total world supplies of 76.5 million bpd, are scheduled to meet in Vienna on June 24 to discuss output levels. Zanganeh's comments matched a specific call last month by the UAE's Nasseri for OPEC to work with producers outside the group to try to lift prices by restricting global supplies. Oil accounts for 80 percent of Iran's hard currency earnings and 40 percent of government revenue. Speaking on U.S. sanctions against Iran, Zanganeh said there was no guarantee that U.S. companies would win contracts in Iran even if the sanctions were lifted. ''We are aware of the fact that U.S. companies are increasing pressure on the administration to lift the embargo. But even if sanctions are called off, it wouldn't necessarily mean that we are interested in dealing with those U.S. companies but it would help us getting a lower bid from European companies,'' he said.

To: marc chatman who wrote (21314)	5/4/1998 11:49:00 AM
From: upanddown	Respond to of 95453

Saudi Oil Minister says he will be meeting with Mexico and Venezuela counterparts later this week to discuss further cuts (CNBC). Probably in conjunction with the Aramco board meeting in Houston on Thursday. biz.yahoo.com That along with the Iran willingness to go along should prop up oil this week. biz.yahoo.com John