Oil debate heats up

Press, 17 December 1976, Page 5

Oil debate heats up

’ZPA-Keuter Doha 3linisters of the world's leading oilexporting States faced another day of heated debate when they resumed discussions in Doha, Qatar, yesterday on raising the price of oil. oil.

The conference of the Organisation of Petroleum Exporting Countries opened to a split between “hawks,” demanding an increase of up to 26 per cent, and “doves” who fear that a big rise would trigger a world recession.

The Ministers later held private meetings at which Algeria, Iran, and Venezuela were believed to be searching for a compromise acceptable to all members.

O.P.E.C.’s decision was anxiously awaited by the rest of the world, especially by industrialised countries with balance-of-payments problems, and by poor States whose economies would be badly hit by a large price rise.

Five O.P.E.C. members outlined their positions on Wednesday, and the other Ministers intervened in the sometimes heated discussions which followed, conference sources said.

Iraq, joined by Libya, argued for an increase which would compensate O.P.E.C. members in full for the 26

per cent inflation since the basic oil price was frozen at SUSU.SI a barrel in October, 1975. Saudi Arabia repeated its view that the freeze should continue for another six months, because the world's economic recovery was not proceeding fast enough. Algeria and Iran insisted that the oil price must he raised, but said the increase should be moderate.

Despite the wide gap in attitudes, most conference observers thought that An agreement would eventually be reached. Conference sources said the ministers might have to meet again today but that the conference was unlikely to go into a fourth day. The Ministers have expressed concern about the plight of the less-developed countries, the sources said, and reached broad agreement on the need to expand the O.P.E.C. fund set up to help the Third World. Kuwait proposed that a tenth of any price increase should be allocated to the fund.