Oil prices now all level

Press, 5 July 1977, Page 8

Oil prices now all level

NZPA-Reuter Vienna i Saudi Arabia and theL United Arab Emirates havel, decided to raise their oillj prices by 5 per cent, falling,] into line with other members . of the Organisation of Petroleum Exporting Countries. , An official statement i quoted bv the Saudi Press Agencv said the decision had ; been taken in the light of i agreement bv most O.P.E.C. i members to drop plans for a ■ further 5 per cent increase i this year. In Vienna, the 0.P.E.C.|1 secretary-general (Mr Ali • Mohammed Jaidah) said the,' move meant that the 13- • nation organisation had., achieved agreement on a . common price for its oil. “It’s definite.” he said, • “O.PE.C. is united on prices now.” The rise, effective from last ; Friday, ended a dispute that 1 split O.P.E.C. in the wake of | a decision bv 11 members last December to increase prices in two stages during i 1977 — by 10 per cent on 1 January i and a further 5 i per cent on July 1. J Saudi Arabia and the I U A F. refused to go higher i

i than 5 per cent on January l.j arguing that a greater in- 1 [crease would harm the world! • economy and cause suffering! in such industrialised countries as Britain. France. Italy. ij and Spain. After O.P.E.C.’s December conference in Doha. Qatar.; intensive efforts were launched to restore unity and’ end the two-tier price system. which gave big advan- < tages to Western customers ;< able to buy cheaper Saudi > and U.A.E. oil. Last Wednesday, nine I member-States announced atj< ■O.P.E.C headquarters in h Vienna that they would drop the second increase because' 1 of offers from Saudi Arabia); and the U.A.E. to equalise on‘‘ 10 per cent if the other! I O.P.E.C. members held the!* line there. 11 But the Libyan Jamahiriyah: (formerly Libya) and Iraq. - which take a strong line on I prices, stayed outside the t Vienna agreement. I Mr Jaidah said, however, t that the Libyans and Iraqis < had already publicly in- c dicated that they would fore- f to the July 1 increase if : s audi Arabia and the U.A.E. !1 raised their prices. i