Saudi Arabia wants to see oil price drop

Press, Volume CXIV, Issue 33445, 29 January 1974, Page 17

Saudi Arabia wants to see oil price drop

'N.Z P A.•Reuter—Copyright '■ TOKYO. January 28. The Saudi Arabian Oil Minister (Sheikh Ahmed Zaki Y’amani) said today that Saudi Arabia would not unilaterally lower the price for crude oil, but only do so in concert with the Gulf States. “We always try to do things of this kind as a group, not as an individual.” he told a press luncheon. He reiterated that Saudi Arabian policy was that it wanted a decrease in the price of crude oil. even though the present level was a fair one.

He said the meeting to be held today in Vienna by members of the Organisation of Petroleum Exporting Countries (0.P.E.C.) “is to study a pricing system for

I the future and has nothing to do with the present level of prices and has nothing to do with Saudi Arabia’s desire to have a price decrease.” But Sheikh Yamani added it was asking other O.P.E.C. members “to consider the possibility of decreasing prices . . . This is a Saudi Arabian initiative and hopefully it will succeed.”

Asked if' Saudi Arabia could unilaterally lower the price of its crude oil if O.P.E.C. members opposed such a move, he said that O.P.E.C. consisted of several groups, including the Gulf States, North African states and Venezuela, among others.

“Therefore Saudi Arabia I will act with Iran, Iraq, Kuwait, Abu Dhabi and Qatar,” he said. He added it was premature to say by how much the price of crude oil might be reduced. This was a matter to be discussed with other O.P.E.C. members. Sheikh Yamani also said that in future the price of Saudi Arabian oil “won’t be in terms of dollars.” “We are interested in technology and industry and therefore we will sell oil to those who are ready and able to give us what we need: technology and industry,” he 'said.

He added that Japan was i in a stronger position to do [this than the United States jand European countries. He also mentioned the international oil companies—known as the “majors”—and said: “American oil companies are dominating 70 per cent of the oil industry in the whole world. Whether you have an interest in this or not as Japanese: that is jyour decision.” There is fear in some O.P.E.C. quarters that present price levels could cause economic disruption throughout the world and could boomerang against oilproducing countries. In an earlier statement in Tokyo, Sheikh Yamani noted

that his country was part of the international community and said: “We have responsibilities towards that community.”

The experts meeting at O.P.E.C. headquarters have no authority to make policy decisions. They will report to oil ministers on long-term pricing policies, and will also make short-term recommendations for prices to be enforced from April 1. Arab diplomatic sources said yesterday that the Arab oil producers—with Saudi Arabia taking the lead—turned down an appeal by President Anwar Sadat to end their oil embargo against the United States.

The Arab oil-producing countries imposed the embargo on the United States and the Netherlands during the October war between the Arabs and the Israelis and reduced deliveries to the rest of the world.

The oil producers, grouped in the organisation of Arab Petroleum Exporting Countries (0.A.P.E.C.), have said they will lift their embargo on one of two conditions: That Israel withdraws from

Arab territory occupied in the 1967 six-day war. Or that the United States gives a public guarantee that the Israeli withdrawal will take place.