OPEC to invite non-members to end crisis
OPEC to invite non-members to end crisis
Agence France-Presse, Jakarta
OPEC is to invite producers from outside the cartel to talks
next month on how to stabilize sky-rocketing oil prices, the
organization's President Purnomo Yusgiantoro said here on Monday.
The unusual move to throw open the Sept. 14 OPEC meeting in
Vienna to non-members comes just days after crude prices hit
record highs, reaching US$44.77 a barrel in New York on Friday.
"OPEC will discuss steps to stabilize world oil prices with
non-OPEC countries and large oil producers, among them Russia and
Angola," Purnomo told journalists here.
"We will discuss world oil price conditions," he said.
Supply uncertainties caused by the financial woes of Russian
oil giant Yukos and terrorist attacks on Iraqi oil pipelines have
sent prices soaring in recent weeks, prompting OPEC to consider a
hike in production.
But Purnomo, who last week branded oil prices "crazy", has
said a decision whether to increase supplies by around 1.5
million barrels per day cannot be made before the Vienna talks.
He said there were no plans to bring the meeting forward,
despite concerns over OPEC's ability and willingness to control
the market.
Meanwhile, world oil markets took a slight breather on Monday
following the previous week's record highs on hopes of an
increase in official OPEC production quotas and a mooted rescue
for Russian energy giant Yukos.
Brent North Sea crude oil for September delivery, which shot
to a new high of $41.50 per barrel during on Friday, traded at
$40.31, 32 cents down on last week's closing price.
New York's light, sweet crude for delivery September, which
hit its own record of $44.77 per barrel on Friday, was 35 cents
lower at $43.60 in out-of-hours electronic deals.
"Oil prices are a little bit lower today. They are not looking
massively bearish but perhaps could slip a little bit further,"
said GNI-Man Financial trader Paul Goodhew.
"The main reason is the latest news... from the OPEC president
saying that the group may consider raising its output limit to
actual production levels, which are predicted to be around 30
million barrels a day at the moment (including Iraq)," he said.
Another factor pushing prices lower was prospects of a rescue
package for stricken oil giant Yukos, which faces possible
bankruptcy due to a massive tax demand from Russian tax
authorities, threatening to interrupt oil deliveries.
According to Britain's Sunday Times newspaper, a consortium of
Dubai-based investors was backing a $10-billion (8.1-billion-
euro) rescue plan for Yukos.
This was likely to be more significant than any OPEC moves,
said Commerzbank analyst David Thomas.
Moves to push OPEC ceilings to match production was "all very
laudable, but it doesn't actually mean any more barrels on the
water", he noted.
"So I think the market ought to pretty well ignore that, and
the price move today will be more on news about Yukos."