Saudi
Arabia rejects OPEC production cut despite Iran call
Reuters
Saudi Oil Minister Ali al-Naimi
By
Deborah
Haynes and Zoltan Simon
AFP
VIENNA
Petroleumworld.com 01 30 06
Giant oil producer Saudi Arabia said Sunday there was "absolutely"
no reason for OPEC to cut production at a forthcoming meeting,
a view echoed by Kuwait, Algeria and four other members, but opposed
by Iran.
The Organisation of the Petroleum Exporting Countries is meeting
Tuesday in Vienna at a time of stubbornly high oil prices, fuelled
by instability fears in key producers Iran and Nigeria.
A majority of the 11-member cartel, which pumps about 40 percent
of the world's crude oil, has already indicated a desire to keep
the output ceiling at a near 25-year-high of 28 million barrels
per day (bpd) for now.
Asked whether there was a reason to cut production on Tuesday,
Saudi Oil Minister Ali al-Naimi, whose country is the world's
biggest producer of crude, said: "Absolutely not".
Kuwaiti Energy Minister Sheikh Ahmad Fahd al-Sabah, who has decided
against attending the meeting at OPEC's Vienna headquarters, joined
the growing chorus of voices supporting no change.
"I think that now, with such high prices, which have become
nearly a record, we (OPEC) should not reduce our production, despite
the huge surplus," Sheikh Ahmad told reporters in Kuwait
City on Sunday.
Political turmoil in Kuwait following the death of its emir earlier
this month also helped push up the price of oil close to a record
high of 70.85 dollars a barrel, which was set at the end of August.
A barrel of light sweet crude oil closed on Friday in New York
up 1.24 dollars at 67.5 dollars.
Among the ministers who have been arriving in Vienna since Saturday,
Algerian Energy Minister Chakib Khelil also looked keen to keep
the status quo.
"For this meeting I think we should leave things the way
they are," he told reporters upon his arrival.
Nigeria, Venezuela, Indonesia and Iraq hold the same stance.
Only Iran, the fourth largest oil exporter in the world, has spoken
out in favour of trimming output by one million barrels per day
at Tuesday's meeting.
Analysts note, however, this stance may be linked to a desire
by Tehran to use its energy weapon against the West amid a standoff
with the European Union and the United States over the country's
nuclear programme.
Attention will be focused on Iranian Oil Minister Kazem Vaziri-Hamaneh,
who is due to arrive in Vienna early on Monday morning, to hear
his latest views.
A decision by Tehran to resume uranium enrichment activities,
which Washington suspects is a cover for a nuclear weapons programme,
has triggered a meeting of the UN nuclear watchdog on Thursday
also in Vienna.
The International Atomic Energy Agency is expected to consider
the possibility of referring Tehran to the Security Council.
Another main factor keeping prices high has been a series of attacks
against oil installations in Nigeria, the world's sixth largest
exporter of oil.
As a result, production in the country has been cut by more than
220,000 barrels per day.
Despite growing calls for production levels to be held tight,
the OPEC cartel may still decide to lower overall production at
a later date, such as the second quarter.
By this time, the cold winter months in the northern hemisphere
will have drawn to a close, reducing demand for energy and lowering
prices.
OPEC is due to meet again on March 8.
Indonesia's Energy Minister Purnomo Yusgiantoro will not be attending
this week's meeting, OPEC's secretariat said. It also looked very
doubtful that Iraqi Oil Minister Ibrahim Bahr al-Ulum will make
an appearance.
AFP
01 29 06
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