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: SargeK who wrote (29946)	9/23/1998 12:53:00 PM
From: Captain James T. Kirk	Respond to of 95453

Gulf Meeting Says More Oil Cuts an Option By Ashraf Fouad KUWAIT (Reuters) - Five Middle East oil ministers said after a short meeting Wednesday they wanted to keep open the option of further production cuts to support world petroleum markets. Kuwait said after the gathering that producers might agree on a third round of output cuts before a ministerial meeting of the Organization of the Petroleum Exporting Countries on November 25. Speaking to reporters after talks with his counterparts from Iran, Algeria, the United Arab Emirates (UAE) and Oman, Kuwaiti Oil Minister Sheikh Saud Nasser al-Sabah said the issue of more cuts ''is on the table and this might come even before November.'' Others appeared more cautious after the talks which ended with a statement that said the ministers would examine necessary measures including cuts to support prices. UAE Oil Minister Obeid bin Saif al-Nasseri, also OPEC's president, told Reuters in an interview that ''it is a correct remark that no time frame was in the statement.'' ''I think that the situation will be continuously studied and there will be a review of measures or actions that could be taken. I think and expect that the appropriate place and practical time (to discuss further cuts) is the next OPEC meeting. Kuwait earlier this month extended an open invitation to OPEC and non-OPEC states to come to the Gulf state to discuss measures needed to boost feeble oil prices. Sheikh Saud has targeted a goal of $17 a barrel for benchmark Brent, currently around $14.50, by OPEC's November 25 meeting. Prices have gained nearly three dollars since mid-August but are still five dollars down from last year's average. The success of Gulf producers' price rescue could well hang on the outcome of talks scheduled between Saudi Arabian Oil Minister Ali al-Naimi on October 2 in the Mexican resort of Cancun with his counterparts from Venezuela and Mexico. These three major world producers brokered two previous rounds of cuts of 3.1 million barrels per day (bpd) by OPEC and a handful of non-member producers earlier this year. But the Latin American producers have said they are not prepared to consider further supply reductions. Iranian Oil Minister Bijan Zanganeh said ''sit and watch'' when asked about what outcome he hoped for from the October meeting between Saudi Arabia, Venezuela and Mexico. Wednesday's statement by Kuwait Petroleum Corporation said the five ministers agreed at their meeting to continue their consultations and cooperation with other producers. They would ''examine all possible options and take the necessary measures to improve the existing oil market prices, including further reductions in oil production.'' The ministers ''reviewed the world oil market situation and noted the concerted efforts by the oil producers to stabilize and strengthen the oil market.'' They called for producers to comply fully with their pledged supply cuts. A downturn in Asian demand and an increase in Iraqi exports are among factors that have stoked a big global glut, inflating inventories with unwanted volumes of crude and refined products and shaving prices by an average 30 percent from last year. The meeting ''reaffirmed'' a statement issued in Kuwait last week following similar talks between Kuwait, Saudi Arabia and Qatar which called for ''achieving a tangible improvement in oil prices.'' --------------------------------------------------------------------------------