OPEC calls emergency meeting<\/p>\n
Reuters, Dubai\/Kuwait\/London<\/p>\n
OPEC producers on Wednesday called an emergency weekend
\nmeeting to decide how much more crude to pump to prevent a long-
\nrunning strike in Venezuela and a looming war in Iraq causing an
\noil price shock.<\/p>\n
The Organization of the Petroleum Exporting Countries (OPEC)
\nsaid oil ministers will meet on Jan. 12 in Vienna after a 25
\npercent rise in prices in the past two months.<\/p>\n
Kuwait's Oil Minister Sheikh Ahmad al-Fahd al-Sabah said
\nministers were discussing an increase of 1.0-1.5 million barrels
\nper day, a rise of four to seven percent on limits now of 23
\nmillion bpd.<\/p>\n
\"There are two proposals. One million barrels per day and 1.5
\nmillion barrels a day,\" the minister told reporters in Kuwait.
\n\"We would favor raising by one million and would agree to 1.5 if
\nnecessary.\"<\/p>\n
OPEC wants to bring prices back inside its US$22-$28 target
\nband, a range it feels does not threaten world economic growth.<\/p>\n
\"The world has tried everything to boost growth without much
\nsuccess and if oil prices stay high we're in for another year of
\nvery slow growth,\" said Mehdi Varzi of Dresdner Kleinwort
\nWasserstein.<\/p>\n
Oil has retreated from a peak of $33.65 a barrel for U.S.
\ncrude since the end of December when it was first revealed that
\nOPEC was discussing a substantial output increase.<\/p>\n
\"They're trying to prevent panic on the oil markets. Most in
\nOPEC are resigned to a war in the Gulf,\" said Varzi.<\/p>\n
In Wednesday trade, U.S. crude eased another 73 cents to
\n$30.35 a barrel and London Brent blend lost 73 cents to $28.60.<\/p>\n
The cartel's most influential producer Saudi Arabia is pushing
\nfor a big increase while most other countries, including Kuwait,
\nAlgeria and Libya, prefer an addition of one million barrels
\ndaily.<\/p>\n
The group, which pumps about 60 percent of world oil exports,
\nwants to plug a 2.7 million bpd supply gap from Venezuela, where
\na strike against President Hugo Chavez is in its sixth week.<\/p>\n
Loss of Iraqi supplies in the event of a U.S. military attack
\nto oust President Saddam Hussein would remove another two million
\nbpd from the 77 million bpd world market.<\/p>\n
\"It is a difficult situation we are in, since we are dealing
\nwith a market affected by a set of extraordinary circumstances
\nthat are beyond our control,\" said OPEC Secretary-General Alvaro
\nSilva.<\/p>\n
Many in OPEC already are pumping at, or close, to capacity.
\nOnly Saudi, the United Arab Emirates, Iran and Nigeria can add
\nvolumes among the 11 member group, Varzi said.<\/p>\n
Shippers and oil company sources said Riyadh already has lined
\nup more crude sales to the United States, Venezuela's largest
\ncustomer.<\/p>\n
Meanwhile in London, world oil prices extended losses on
\nWednesday as the OPEC cartel prepared to lift exports to cover a
\nshortage from a prolonged strike in Venezuela.<\/p>\n
International benchmark Brent crude oil fell 43 cents to
\nUS$28.90 per barrel by midday in London, bringing the week's drop
\nto seven percent so far.<\/p>\n
U.S. crude futures fell 39 cents to $30.69.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/opec-calls-emergency-meeting-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }