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ARAB-OPEC - July 7 - US Oil Prices Rise.

US oil prices recapture some recent losses after OPEC members Venezuela and Algeria say Saudi Arabia would only go ahead with a plan to raise output if other Opec members agreed. Crude oil on the New York Mercantile Exchange settles at US$30.28/b, up 29 cents and recovering some of the over US$2 lost earlier in the week. Prices rise as dealers seek concrete proof that Saudi Arabia will fulfil its July pledge to ease high oil price by producing an additional 500,000b/d. Other members of OPEC say that Saudi Arabia will work with OPEC on any output increase. OPEC Pres. Rodriguez of Venezuela says: "I am attached to the official position taken by OPEC members at the last 2 meetings that any decision has to be taken by consensus after consultations with all members. Algeria's Mines and Energy Minister Chakib Khelil later says he was unaware of a Saudi plan to raise oil output. (The UAE, Algeria and Kuwait - most likely the only OPEC members with any spare capacity besides Saudi Arabia - are expected to contribute to any increase, although Saudi Arabia should pump most of the extra barrels.)

The US Energy Information Administration forecast that OPEC production, excluding Iraq, would be 26.2mb/d in the 3rd quarter, almost 1m barrels higher than during the 2nd quarter. The agency forecast that it would be 800,000bb/d above the cartel's production target of 25.4mb/d. The US Environmental Protection Agency (EPA) says that falling gasoline prices are dimming any chance of lifting new anti-smog fuel regulations, blamed for this summer's rise at the pumps. (The EPA came under fire from trade associations and consumer groups after it introduced its new clean-air gasoline rules by June 1, which refiners said were more expensive to meet.) In the equities market, share of major oil companies end slightly higher.)
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Publication:APS Diplomat Recorder
Article Type:Brief Article
Geographic Code:1USA
Date:Jul 8, 2000
Previous Article:ARABS-ISRAEL - July 3 - Summit Discussed.
Next Article:ARABS-UN - July 7 - 'Sanctions Hinder Production Capacity'.

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