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.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: diana g who wrote (23702)	6/9/1998 7:54:00 PM
From: Czechsinthemail	Respond to of 95453

6/9/98 Oil Minister Says Kuwait Likely To Trim Oil Production Soon NEW YORK -(Dow Jones)- Kuwait's oil minister said Tuesday his country would announce further oil output reductions linked to the latest round of production cuts by some of the world's major oil producers. "I think everybody for their own interest has to take a cut," Sheik Saud Nasser Al-Sabah said at a conference with visiting Saudi Oil Minister Ali Naimi, who is on a regional tour to lobby fellow Organization of Petroleum Exporting Countries members to further trim output in an effort to boost prices. Last week, Saudi Arabia, Venezuela and non-OPEC member Mexico, the same three countries which instigated the first round of output cuts in March, pledged to trim another 450,000 barrels a day of crude oil from world markets beginning July 1. Oil prices have been slipping since OPEC announced a 10% increase in production quotas in late 1997. Prices have hovered near a 10-year low, a price decline that analysts attribute to overproduction, lessened demand for oil in Asia due to the region's economic downturn and a mild winter that reduced demand for heating oil. Sheik Saud said the Kuwaiti cuts would be announced following consultations with the cabinet. He indicated that the cuts were likely to fall in the range of 50,000 b/d to 100,000 b/d. Venezuelan Oil Minister Erwin Arrieta told Dow Jones last week that Kuwait and the United Arab Emirates would each trim output by 75,000 b/d in this round of cutbacks. The U.A.E. hasn't yet stated a position. "I am sure that in addition to the Amsterdam agreement to cut 450,000 b/d, there will be more cuts between now and the OPEC meeting (starting June 24)," Naimi said without elaborating on which countries are expected to make cuts and at what level those reductions would be. But his Kuwaiti counterpart suggested that a total of one million b/d crude output reduction during this latest round of cuts "could be suitable." Last week Saudi Arabia promised to reduce output by 225,000 b/d, Venezuela 125,000 b/d and Mexico 100,000 b/d. On Sunday Qatar joined in with a pledge to cut 20,000 b/d. These reductions are in addition to March pledges by OPEC and non-OPEC producers to reduce world oil supply by up to 1.7 million b/d.