Arabs’ oil income

Press, Volume CXIII, Issue 33417, 26 December 1973, Page 9

Arabs ’ oil income

ty..Z P.A.-Reuter—Cupyrtaht) TEHERAN. Dec. 25. The decision by the six Gulf States to more than double the price of their oil from January 1 is likely to earn them more than SLS6O,OOOm in 1974, according to Western oil experts. Abu Dhabi. Iran. Iraq. Kuwait. Qatar, and Saudi Arabia together possess about twothirds of the world's proven oil reserves, and supply about 43 per cent of the total supplies imported by the nonCommumst world. The international oil companies which extract the oil, and refine and ship it to world buyers, will now be faced with a "marker.” or reference-point price known as the “posted” figure, of SUSI 1.651.

Less than three years ago. the posted price for a barrel of crude in the Gulf was as little as SUS 1.80 Europe depends on the Middle East for about 73 per cent of its oil imports, and Japan imports 88 per cent <>l her oil from Iran and the Arab producer-States. The United States is the most

favourably-placed ol the Western world’s industrialised nations, having taken only a comparatively modest 15 per cent of her total oil consumption from the Middle East in the last vear.

Western oil experts have expressed dismay at the size of the price rise: one says [that the only glimmer of light rests in a'proposal by the Shah of Iran for consultations . between the Organisation of [Petroleum Exporting Countries and the Organisation of Economic Co-operation and Development to work out a joint policy on future oil prices and policies. The United States. Western Europe, and Japan, belong to the O.E.C.D. The members of the 0.P.E.C., other than the six Gulf States, are Algeria, Ecuador, Indonesia, Libya, Nigeria, Venezuela, and Gabon, which has associate membership. The Shah of Iran said just ‘before Christmas: "After gll. iwe are all on the same .planet, and we sink or swim 'together in the long run. If the West is crippled, so will (the oil nations be, ultifmately. "The Gulf States and the lother O.P.E.C. countries will meet on January 7.

"The era ol the industrialised nations’ terrific progress, and even more terrific income and wealth, based on cheap oil, is finished.” he declared.

, The Shah acknowledged the Midas touch of oil yesterday. I when he proposed that the j oil-wealthy nations should create a new international fund, or bank, to assist the poorer States which, he said, would be hard hit by the I price rise.

i Illustrating the gush of dollars to those States with oil, the Shah cited Abu Dhabi, with a population estimated at fewer than 100,000. Her oil earnings worked out at SUS4O.OOO a year for each of her inhabitants, he said.