Monday, September 11, 2000

OPEC to increase crude output by 3%


Analysts: Don't expect lower prices

By Bruce Stanley
The Associated Press

        VIENNA, Austria — OPEC, facing mounting international pressure to pump more oil to stem surging fuel prices, agreed Sunday to boost the group's official output of crude by 800,000 barrels a day.

        Analysts cautioned that the increase, which was roughly in line with what many had predicted, won't do much to roll back prices because OPEC members already are producing at least 700,000 barrels above their current quotas.

        The decision was reached after four hours of informal talks in Vienna among members of the Organization of Petroleum Exporting Coun tries.

        The new quota will take effect Oct. 1, and OPEC members agreed to meet again Nov. 12 to reassess market conditions.

        “This is our best assessment of what the market needs now,” Saudi Arabian oil minister Ali Naimi said. “It will improve and moderate the price, and if it doesn't, we have a mechanism to trigger some more.”

        In Washington, the U.S. government gave Saudi Arabia credit for the OPEC production increase but said it is too early to know what effect it will have.

        “Whether such an increase will stabilize the market remains to be seen,” Energy Secretary Bill Richardson said.

       



Job fair seeks aviation workers
Advice is worth reviewing
The Success Coach
- OPEC to increase crude output by 3%