Word: bbl
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...from tumbling uncontrollably. Over the previous weekend Saudi Arabia and its Persian Gulf neighbors had issued an ultimatum to the rest of OPEC: unless a deal was struck within seven days, the gulf nations said, they would slash their oil prices to as low as $27 per bbl., $7 below the official OPEC price of $34. Such a move could trigger an all-out price war that would threaten OPEC's survival...
Behind OPEC's crisis is the continuing worldwide glut of oil that is forcing down prices. Three weeks ago Britain and Norway, which are not OPEC members, lowered their charge for North Sea oil by $3 per bbl., to $30.50. Nigeria, a member, promptly retaliated by cutting the price of its premium-quality crude by $5.50, to $30 per bbl. That put enormous pressure on the other OPEC countries to make big cuts...
...that the OPEC benchmark stay at $34. Privately, they are selling all the oil they can at cut rates to raise cash for their war with another OPEC member, Iraq. Oil industry sources in Western Europe say that Iran has been selling oil for as little as $20 per bbl. The Iranians apparently hope that the official price will stay at $34 so they can keep undercutting...
...Mexicans apparently will go along. In Paris last week, Mexican officials huddled with OPEC representatives from Venezuela, Algeria and Kuwait. According to OPEC sources, the Mexicans indicated that they would follow the organization's lead on pricing and hold their production to 1.5 million bbl. a day, no higher than the average level of last year...
Consumer groups also oppose the bill, even though the Administration contends that it would lower prices. Energy Secretary Donald Hodel estimates that residential gas rates could drop as much as 5% in the first year under the mea sure, cheaper) that oil costs about $31 per bbl. (and more if crude is cheaper). But the Citizen/Labor Energy Coalition, the main consumer antideregulation lobby, argues Says prices would go up, not down, by perhaps 67% within four years. Says Edwin Rothschild, assistant director, referring to an Administration argument: "They that that as much gas will be falling in price as will...