Unexpected visitor at O.P.E.C. talks

Press, 11 September 1987, Page 6

Unexpected visitor at O.P.E.C. talks

NZPA-Reuter Vienna A senior. Iranian official has arrived unannounced in Vienna, apparently to observe O.P.E.C. talks on the overproduction . that is weakening the group’s goal of a price of SUSIB ($2B) for a barrel of oil. When the presence of the Iranian Deputy Oil Minister, Hossein Kazempour Ardebili, in Vienna became known, oil traders speculated that he was probably attending as an observer at the talks starting today about production quota violations which are lowering world oil prices. Iran has long advocated severe O.P.E.C. output restrictions to try to enforce a price of $2B per barrel. The position was underlined by the Iranian Finance Minister, Mohammad-Javad Larijani, who said in Ankara on Wednesday that O.P.E.C. should push prices up to such a level. The current O.P.E.C. price is being undermined by quota violations by’ several Gulf States.

The issue will be broached when the Organisation of Petroleum Exporting Countries’ president, Rilwanu Lukman, chairs committees on quotas and world oil price trends today. Mr Lukman yesterday denied oil industry reports that the group produced 19.7 millitn bar-

rels per day in Augvist, a major departure from the 16.6 million bpd limit the group imposed on itself until the end of the year.

Such reports have knocked $3 ($4.80) off the price of a barrel of oil in four weeks, despite fears that a showdown in the Gulf could lead to a disruption of world oil supplies.

Mr Lukman, the Nigerian Oil Minister, told reporters on Wednesday that he expected to. visit the Gulf soon to impress on member States the need to adhere to their output limits to defend the goal of SUSIB ($2B) which the group set for itself at its last meeting in Vienna in June.

He did not say which States he would visit Industry sources say most of the over-production is from Iran, Kuwait, the United Arab Emirates and Iraq, which rejects its quota, demanding the same allocation given to Iran. '.

There was speculation in Vienna that Mr Ardebili might seek a meeting with the Saudi Oil Minister, Hisham Nazer, who. was due to arrive today, but there was no way of confirming that such an encounter might take place. Iran needs Oil revenue to continue the war with Iraq, and Riyadh needs steady income to finance its development plans.