Word: opec
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...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...
...London meeting, the Saudis and their gulf allies suggested that the OPEC price be dropped $4, to $30. At the same time, they insisted that Nigeria boost its charge to $31.50. Reason: Nigeria's so-called sweet crude yields a particularly desirable mix of products after refining, so the Saudis must charge less than Nigeria to stay competitive. Nigeria, fearful of losing sales to its North Sea competitors, is so far sticking with its price...
...major stumbling block to an agreement is the belligerent attitude of Iran, which sent no delegate to last week's sessions. Publicly, the Iranians have demanded 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...
...principal characters in last week's events remained offstage: British Prime Minister Margaret Thatcher. It is increasingly clear that OPEC will need some cooperation from other oil-producing countries to have any hope of controlling prices. Two of the largest of these competitors, Mexico and Norway, have been yielding to the full-court press they have been getting from OPEC oil ministers in the past week or two, but apparently Thatcher has not. Said one of her aides: "OPEC is a cartel and must run its own affairs. It must stop involving the British government...
Nonetheless, British Energy Minister Nigel Lawson met separately with the ministers from Venezuela and the United Arab Emirates. All three were mum about the talks. Some oilmen in Britain, however, believe the U.K. might reach a tacit understanding with OPEC to avoid a price war. Further price cuts could, after all, drain revenues from the sagging British economy. But any agreement to limit production would go against Thatcher's staunch free-market philosophy, and would also violate contracts that give private companies, including British Petroleum and Royal Dutch/Shell, the right to pump North Sea crude...