Yamani says oil price won’t change

Press, 21 May 1982, Page 6

Yamani says oil price won’t change

NZPA-Reuter Quito, Equador The Saudi Arabian Oil Minister (Sheikh Ahmed Zaki Yamani) said yesterday that O.P.E.C. would not alter its reference prices of SUS 34 a barrel when it meets in Quito, The Equadorian capital. tomorrow.

Arriving for the ministerial conference of O.P.E.C. (the Organisation of Petroleum Exporting Countries), Sheikh Yamani also told reporters that Saudi Arabian oil output ran at 6.5 million barrels daily in April. The Saudis, the biggest exporters of oil, have been steadily cutting back their output to defend oil prices in the prevailing world glut. They were pumping out more than 10 million barrels daily at one time last year. Asked by reporters whetherer O.P.E.C. would have to re duce its reference prices at tomorrow’s meeting, Sheikh Yamani replied: “The price? Oh no." Other O.P.E.C. Ministers arriving in Quito also expressed optimism that 0.P.E.C., which some analysts recently saw as near to collapse, would be able to ride out the glut with its reference price secure at ?US34. Indonesia’s Dr Subroto told reporters: “The sky looks a little brighter but there are still overhanging clouds.” Dr Subroto explained that demand for O.P.E.C. crude oil seemed to be beginning to revive although some of the 13 exporters were still having trouble selling enough oil to meet even reduced, 0.P.E.C.-assigned quotas. O.P.E.C. assigned quotas to its members and fixed a ceiling for its total output when it met in Vienna two months ago. The ceiling was set at 18 million barrels daily but Ministers are saying actually output is down "around 16.5 million — not least because the Saudis appear to be about one million barrels

down on their daily quota of 7.5 million barrels. Asked- about the O.P.E.C. ceiling, Sheikh Yamani said yesterday: “We have to discuss it. We don't have any position. We have to discuss it and decide."

Delegates said privately they doubted whether O.P.E.C. would adjust the ceiling or individual output quotas at this meeting but that they might well mandate a committee to keep the market under review. A further Ministers’ meeting in the northern summer could set new output goals if demand did fulfil O.P.E.C. predictions and start building up appreciably from the current 20-year low. Iran has never publicly endorsed the quota accord and is said by oil-industry sources to be exceeding its assigned quota of 1.2 million barrels daily. A senior Iranian delegate. Ali Shams Ardekhani, confirmed to reporters that Iran did not feel bound by any quota. Asked about reports that it was selling two million barrels daily, he replied: “Maybe more." “We do not give a damn who gets upset,” he replied, declaring that quotas had been set arbitrarily by a Saudi-led O.P.E.C. majority. But he said Iran had undertaken to ensure that total output by itself, its Gulf War opponent Iraq, and Saudi Arabia, did not exceed 10 million barrels daily. While at war with Iraq, the Iranians are also at odds politically with Saudi Arabia. Western oil industry sources say that while O.P.E.C. looks likely to be able to defend its reference prices for now, the market could .again be awash with oil if the Gulf War ends and Iraq and Iran both rush to build up sales.

Mr Ali Shams said Iran aimed to produce three million barrels daily and sell 2.5 million abroad.