Saudi oil likely to rise again

Press, 20 September 1980, Page 8

Saudi oil likely to rise again

NZPA Vienna Saudi Arabia’s agreement to raise its oil price by SUS2 a barrel could pave the way for another $2 Saudi price rise before the end of the year, sources connected with the world oil cartel have said.

That would help the Organisation of Petroleum Exporting Countries achieve price unity by narrowing the gap in prices charged by its members and prepare for adoption later of a long-term plan, calling for small oil price rises every three months, O.P.E.C. sources said.

The Saudis agreed on Wednesday to raise their price from $2B per 42-gallon barrel to $3O as part of a unanimouse decision by the 13nation oil cartel at the end of a three-day meeting in Vienna. . '

The group also agreed to freeze all other O.P.E.C. prices until a December 15 meeting in Bali, Indonesia. O.P.E.C. prices will thus range from the Saudi low of $3O to a high of $37 charged by Algeria. Libya, and Nigeria. Before the Vienna agreement, Saudi Arabia had been trying to get other O.P.E.C. members to bring their prices down to the unobserved benchmark price of $32 a barrel in return for a Saudi increase to that level.