Saudis set to raise oil price in O.P.E.C. deal

Press, 27 May 1981, Page 1

Saudis set to raise oil price in O.P.E.C. deal

NZPA . Geneva Saudi Arabia, the world’s biggest oil exporter, appears ready to raise its price slightly in return for a price freeze by other members of the oil cartel, according to Organisation of Petroleum Exporting Countries Ministers and other O.P.E.C. sources meeting at Geneva.

The Saudis were ex-pected-to raise their price by SUS2 a barrel, from $32 ($NZ36.50) in a bid to strike a broad compromise within 0.P.E.C., according to the Iraqi Oil Minister (Mr Tayeh Abdul Karim). That would raise the average O.P.E.C. oil -price by about 80c a barrel, from slightly more than $35 (SNZ4O) a barrel at present. The Libyan Oil Minister (Mr Abdessalam Zagaar) said that the Saudis had given out “a few hints” that they were willing to raise their price in spite of recent Saudi calls for a price freeze. . The Iranian Deputy Oil Minister, (Mr Hassan

Sadat) said that the Saudis had to raise their price because of pressure from other O.P.E.C. members.

“Saudi Arabia has no choice.” he said.

The Saudi price of $32 a barrel is the lowest among O.P.E.C.’s 13 members. Most members charge $36, and Algeria, Nigeria, and Libya charge between $4O and $4l for their highquality oil. The Saudi Arabian Oil Minister (Sheikh Ahmed Zaki Yamani) left open the possibility of a small price increase, but ruled out an increase to $36 to match other O.P.E.C, members.

“We will never go t 0536,” $36,” he told reporters in the lobby of the luxury Geneva Hotel where the O.P.E.C. conference opened on Monday. Some O.P.E.C. sources predicted that the Saudis would agree informally at the meeting to lower their record-high production, which is flooding world oil markets and depressing

world oil markets and prices. But Sheikh Yamani said that he w-ould not even discuss production at the meeting. The Saudis are pumping 10.3 million barrels a day of oil, which is more than 40 per cent of total O.P.E.C. output.

Ministers spent the first

day of the meeting discussing administrative matters. They elected a Gabon Oil Company executive, Mr Marc Nan Nguema, as the new O.P.E.C. Secretary-General. Mr Nguema, aged 37, will replace Rene Ortiz, of Ecuador, whose two-year term has expired.