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 : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: John Hunt who wrote (24216)	12/13/1998 12:11:00 PM
From: goldsnow	Respond to of 116981

Venezuela, Mexico, Saudi To Meet For Oil Talks 01:35 a.m. Dec 13, 1998 Eastern By Tom Ashby CARACAS (Reuters) - Oil producers Mexico and Venezuela agreed Saturday to meet the world's number one supplier Saudi Arabia next week amid a deepening crash in oil prices that has sent their economies into crisis. The Madrid rendezvous will regroup the trio that in March initiated a series of worldwide oil production cuts, although Venezuela, which elected a new president last Sunday, has so far failed to implement the cuts fully and declined to join the other two in prolonging them by six months to the end of next year. After a 90-minute meeting with Mexican Energy Minister Luis Tellez, Venezuelan President-elect Hugo Chavez said his government would fully comply with the existing deal to limit output until June next year, and said he would study the possibility of prolonging it. ''After the conversations we will have next week and in the first few days of January, combined with market monitoring, we will study the possibility of prolonging the agreement,'' Chavez told journalists after the talks in a military compound. Some producers blame noncompliance with the deal, particularly by Iran and Venezuela, for its marked failure to stem sliding prices that, adjusting for inflation, hit their lowest level since the 1973 oil price shock this week. ''The idea is that we would be (in Madrid) at the level of ministers and at the technical level to analyze the international oil situation and take the measures necessary to stabilize prices,'' said Tellez. Chavez, who does not take office until February 2, said the Madrid talks would also include members of the outgoing Venezuelan government of Rafael Caldera. Having won the election with promises to defend oil prices, failed coup leader Chavez held a long meeting with officials from the outgoing administration Thursday to talk about the policy. Outgoing Energy and Mines Minister Erwin Arrieta, who in March spearheaded the cuts, dramatically changed his mind last week, saying the policy had failed and the country should instead increase market share. Speaking earlier Saturday, he confirmed that Venezuela was still about 125,000 barrels per day (bpd) short of its agreed 525,000 bpd cut, but he insisted that full compliance would make little difference to prices. ''There is a structural problem... We have argued that the solution is not through the path of limiting production but increasing space in the market so there is room for the production,'' he said after a conference in the ministry. In reversing his position, Arrieta fell into line with state oil company Petroleos de Venezuela, whose president Luis Giusti designed a strategy of rapid production growth backed by billions of foreign dollars. Chavez has vowed to sack Giusti. He has yet to nominate a successor for either Arrieta or Giusti but left-wing senator Ali Rodriguez is tipped for the post of minister. Saudi Oil Minister Ali al-Naimi, speaking in Cairo, Saturday again called for compliance with the June deal which he said would lead to results in the market. Copyright 1998 Reuters Limited.