Minister predicts oil glut

Press, 22 February 1980, Page 6

Minister predicts oil glut

NZPA-Reuter London The Iraqi Oil Minister (Mr Tayeh Abdul-Karim) has predicted the emergence of a surplus in the world oil market by the middle of the year which would enable Organisation of Petroleum Exporting Countries to return to a single unified basic price for oil. Speaking on the eve ot a meeting in London of an informal O.P.E.C. committee charged with mapping O.P.E.C.’s long-term strategy in the 1980 s, Mr AbdulKarim said an effective surplus would first hit prices in the free “spot” market. Hectic .demand during the past year has been largely blamed for the doubling of world oil prices in 1979. Mr Abdul-Karim said spot prices had already declined. On the world’s largest market in Rotterdam, dealers could no longer sell O.P.E.C. oil much above maximum official prices? charged by the O.P.E.C. States compared to up to double the official prices at the height of last year’s shortages during the Iranian revolution, he told reporters. Mr Abdul-Karim said the O.P.E.C. Oil Minister would be able to restore their price unity at their regular pricefixing conference in Algiers next June. O.P.E.C. failed in its attempt to return to a pricing system based on a “marker” when the Oil Ministers held their last regular conference in Caracas two months ago. He dismissed calls for an emergency O.P.E.C. meeting to discuss prices before June as unrealistic. The United Arab Emirates Oil Minister (Dr Mana Oteiba) called for such a meeting this week.