OPEC will address falling oil prices at Apr. 24 meeting

The Organization of Petroleum Exporting Countries will discuss the recent drop in oil prices at a called meeting Apr. 24 in Vienna, OPEC Pres. Abdulla Bin Hamad al-Attiyah said Monday.

April 9, 2003

2 min read

By an OGJ correspondent

PARIS, Apr. 8 -- The Organization of Petroleum Exporting Countries will discuss the recent drop in oil prices at a called meeting Apr. 24 in Vienna, OPEC Pres. Abdulla Bin Hamad al-Attiyah said Monday.

At a press conference in Paris with France's Industry Minister Nicole Fontaine, Al-Attiyah said OPEC would not wait the self-prescribed 20-day period before taking compensatory measures if oil prices fall below the group's targeted range of $22-28/bbl.

At their last meeting Mar. 11, OPEC members voted to maintain a 6.5% production set in January as oil prices exceeded their $28/bbl cap, often by significant amounts, from Dec. 16 through Mar. 18. At the March session, OPEC ministers said they would meet June 11 in Doha, Qatar, to assess the world oil situation (OGJ Online, Mar. 11, 2003).

Al-Attiyah, who is also energy minister for Qatar, said Monday there is now a oil glut and while he "believed very strongly that OPEC has taken into account the world economic slump, at the same time we have to work for our survival."

He said both oil producers and consumers should work together towards a stable economy. But right now "more oil (is) on the market than can be absorbed." He said there is likely still some Iraqi oil coming on the market through Kirkuk.

Al-Attiyah agreed with Fontaine that Iraq's oil production should be managed by an independent Iraqi administration after the war. However, that should really be independent. But an aide to the OPEC executive later told OGJ Online that was unlikely to happen for some time.

Since Iraq is still a member of OPEC, Al-Attiyah said, whether its oil production should be increased to finance reconstruction after the war would be a matter for discussion within OPEC when the time comes. "Iraq should have the right to suggest this and it will be decided jointly what will be both good for Iraq and good for OPEC," he said.

Al-Attiyah invited Fontaine to visit Qatar soon to discuss new projects, which could invove small and mid-sized French companies. "There is already a very strong relationship between Qatar and TotalFinaElf," both ministers agreed. The Qatari minister also said he has "a very special relationship" with the new executive director of the Paris-based International Energy Agency, Claude Mandil, and hoped there would be more understanding for OPEC's position during Mandil's tenure.