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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Bill Murphy who wrote (4267)	3/14/1999 7:03:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 81913

Boll: I certainly wish GATA well. BTW, here is another article that explicitly states WASHINGTON FAVORS HIGHER OIL PRICES, because continued low prices threaten chaos in the Gulf. Will they ever favor higher gold prices? Don't hold your breath. <<<Analysts: Time Is Right for Oil Cut>>> (AP) biz.yahoo.com By TAREK AL-ISSAWI Associated Press Writer DUBAI, United Arab Emirates (AP) -- The success of an agreement to cut oil production and raise prices depends on all countries doing their share -- something Gulf oil analysts said Sunday is likely given the costly effect quota-busting has had on prices. Gulf states have seen their revenues hit hard by the slide in oil prices, which until recently had been hovering near its lowest levels in 20 years -- about $10 per barrel. Major oil producers announced Friday a plan to cut production by more than 2 million barrels a day, which could lift prices to $15 per barrel by year's end ''if the producers remain committed to the agreement,'' according to a former Saudi oil minister. ''I hope oil producers have learned a lesson from the drop in oil prices,'' Ahmed Zaki Yamani told the Qatar News Agency. News of the planned cuts has pushed oil prices upward. On Friday, the price for April delivery of light, sweet crude rose 18 cents to close at $14.49 a barrel on the New York Mercantile Exchange, after hitting an intraday high of $15.11 -- the highest since early October. In London, North Sea Brent Blend crude oil rose 42 cents to $12.60 per barrel at the International Petroleum Exchange, after hitting an intraday high of $13.19. Brent crude last settled above $13 per barrel in November. Abdul Aziz Dagastani, a Saudi economics expert, is among those analysts who are confident that the pain caused in part by some nations' quota violations will strengthen producers' will to comply. ''The low level of prices will be a great motivation for the members of the Organization of Petroleum Exporting Countries to commit themselves to the deal. They realize that commitment achieves their mutual interests,'' Dagastani said. According to an independent Saudi study, oil revenues of six Gulf nations -- Saudi Arabia, Kuwait, the United Arab Emirates, Oman, Bahrain and Qatar -- fell from $90 billion in 1997 to $55 billion in 1998, a 39 percent drop. Optimism, however, often has followed production agreements, then faded quickly. In recent years, Iran and Venezuela have reportedly been the biggest OPEC quota-busters. Other OPEC members privately have accused Iran of overproducing an average of 300,000 barrels per day and Venezuela, 100,000 barrels per day. Iran has denied violating its quota, and the dispute over the baseline for Iran's oil production cuts was resolved last week, though at what level wasn't clear. Venezuela generally hasn't commented on reports that it is cheating, though the nation's new government has said it will respect its quota. Jassem al-Saadoun, an independent Kuwaiti economist, said the latest agreement would be ''worthless'' without compliance, but noted it had the ''blessing of very strong parties, including the United States.'' Washington fears low oil prices will produce political and social instability in the Gulf region, al-Saadoun told The Associated Press. Kuwaiti Oil Minister Sheik Saud Nasser Al-Sabah said Saturday that the agreement calls for production cuts of 2.029 million barrels per day, including 140,000 barrels per day from Kuwait. A breakdown of the deal, which takes effect April 1 as the industry heads into the season when oil demand lessens, is to be announced at the March 23 OPEC meeting in Vienna. Analysts agree the key to its success is compliance with set quotas. ''The password is compliance,'' said Abdullah al-Dabbagh, a member of the financial and economic committee in the Saudi consultative council. Next Previous