Oil exporters count losses

Press, Volume CXV, Issue 33779, 27 February 1975, Page 17

Oil exporters count losses

(N.Z.P.A.-Reuter—Copyright)

VIENNA, February 26.

Oil-exporting nations prepared today to count how much money they have lost through dollar depreciation —a study that could lead to a new revenue-calculating system and possibly higher costs for some consumers.

It seemed unlikely, however, that any quick action would be taken by the 13nation Organisation of Petroleum Exporting Countries (0.P.E.C.), informed sources said.

The Iranian Interior Minister (Mr Jamshid Amouzegar) said categorically last night that O.P.E.C. had no intention of renouncing a price standstill enforced last December. The present price of SUS 10.46 for an average barrel of oil would not be changed before September 30, he declared.

“We are not going to change the basic price of oil. This is final, fixed,” he said after a seven-hour meeting of O.P.E.C. oil ministers.

But the Iranian minister, one of O.P.E.C.’s most influential figures, refused to say whether the planned revenue-calculating review would lead to an indirect rise in petroleum costs. There were two completely separate questions concerning money, he said. There would be no change of price to take account of Western inflation before September, but O.P.E.C. might still act to preserve 1 its purchasing power, now eroded by the weakening value of the dollar.

O.P.E.C. sources said that the oil ministers were ready to discuss the monetary problem but the debate could be delayed by continiuing examination of docu-

rnents for O.P.E.C.’s first summit conference, due to open in Algiers next Tuesday. If planning for the summit meeting runs late, the discussion on the dollar could be delayed until late tonight or tomorrow. But it was hoped the subject would bs dealt with today.

Dr Amouzegar said that O.P.E.C. wanted to keep th« dollar as a means of payiment for oil, but was considering linking revenues to notional special drawing rights i issued by the International Monetary Fund. Other solutions might also be considered.

Financial experts said that calculation by s.d.r.s would ensure more reliable earnings for O.P.E.C. countries but could mean higher costt for oil-purchasing countries with weak currencies, forced to spend more of theii money to buy sxtra. Dr Amouzegar also dis missed rumours that O.PX.C. planned a co-ordi-nated cutback on production.

He said that the world’t petroleum needs would b< met and blamed multi ‘national oil companies fci I cutting back on the amoun lof oil extracted in the las: :two months.

I By some estimates, oilflelc I production in O.P.E.C. coun I tries is now running three ■four million barrels a dq i below capacity.