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

To: Tulvio Durand who wrote (24741)	6/25/1998 2:02:00 PM
From: diana g	Read Replies (1) \| Respond to of 95453

It's official OPEC cuts oil production Thursday June 25 1:45 PM EDT VIENNA, Austria, June 25 (UPI) - After two days of haggling over the current state of oil prices, ministers with the Organization of Petroleum Exporting Countries have announced production cuts of 1.35 million barrels a day. The OPEC reductions were disclosed at a news conference today in Vienna and were set to take effect July 1. The slash in the production of oil more than doubles the cuts of 1. 245 million barrels daily agreed on by OPEC nations in March reductions back then, which appeared to have only a minor impact on plunging prices. Kuwait's oil minister Sheikh Saud Nasser Al Sabah said, oil producing countries had to take action as they faced a world oil glut, that has prices at their lowest levels in more than a decade. News of the production cut emerged Wednesday, but was premature, since no formal deal was reached until late today. The deal in reaching an agreement was that OPEC's second-largest producer, Iran, had backed off an initial agreement and refused to go along with the cuts, until today. Imposing the biggest cut in oil production was Saudi Arabia, which agreed to drop its total by 725,000 barrels per day. Venezuela reportedly agreed a daily cut of 525,000 barrels. Both Russia and Iran want to sell large amounts of oil, but were ultimately persuaded by their own technological problems and worries that a further production surge would disrupt international prices. Iran now pumps some 3.8 million barrels a day, but agreed to cut back to 3.6 million, after Saudi Arabia reluctantly agreed to once again producing just over eight million barrels a day. Oil analysts will now watch to see if the action can push prices back up to approximately $17 a barrel. The overall cut represents more than 1 per cent of global demand. The agreement, to be ratified at OPEC's summer conference, would take production cuts agreed to by the cartel this year to 2.625 million barrels per day. Members of OPEC include Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. Non-OPEC members Mexico and Russia have also said they will co- operate with any cuts in output.