ARAB-OPEC AFFAIRS - Mar 31 - Vienna Meet Cuts Output Ceiling To 23.5M B/D.

OPEC's one-day ministerial conference decides to implement its Feb. 10 agreement, reached in Algiers where the oil ministers then met, to cut the official oil production ceiling by 1m b/d to 23.5m b/d from Apr 1. (However, futures prices of WTI at NYMEX and Brent at IPE fell by more than $1/b on the following day as the markets did not believe OPEC members were really intended to cut their actual production, which with Iraq included still averaged about 28m b/d by April 2. The markets' sentiment was reinforced as the Saudi Ambassador to Washington, Prince Bander Ibn Sultan, told reporters after visiting Pres. Bush at the White House that Saudi Arabia will make sure there will be no oil shortage. OPEC's next ministerial meeting is to be held in Beirut on June 3).