OPEC Ministers Expect to Keep Taps Wide Open

THE JOURNAL RECORD, November 26, 1991 | Go to article overview
Save to active project

OPEC Ministers Expect to Keep Taps Wide Open

VIENNA, Austria (AP) _ The Organization of Petroleum Exporting Countries should hold its oil taps wide open during the winter, even though a glut of crude may be forming, several OPEC ministers said Monday.

Saudi Arabia's influential oil minister, Hisham Nazer, said the 13-nation cartel should produce enough in the months ahead to cover demand from oil-consuming nations.

"We want to meet the demand in the market," he said after arriving late Monday for the OPEC winter conference. The meeting begins today.

Nazer predicted demand for the group's oil at 25.2 million barrels a day in the January-March quarter, about a million barrels above current production.

Earlier, the Middle East Economic Survey, a respected newsletter published in Nicosia, Cyprus, said the kingdom would likely seek an increase in the cartel's output ceiling to match strong sales.

Meanwhile, oil ministers Ginandjar Kartasasmita of Indonesia and Jibril Aminu of Nigeria called for a rollover of the current ceiling of 23.65 million barrels a day through the first quarter of next year.

"It will probably be wiser just to maintain the present level of production," Ginandjar said.

Aminu agreed, even though he said a glut of crude may be building up.

"I think there is a bit too much oil for the (winter) season," he said.

Still, he said, "it is bearable" now.

Oil prices rose a bit early this fall, climbing within about 30 cents of the cartel's target of $21 a barrel, but they have been retreating in recent weeks.

The average price of a basket of crudes monitored by OPEC was $19.74 a barrel last week, down from $19.98 in the previous week.

Prices for U.S. and European light sweet crudes usually are about a dollar or two higher than the OPEC average. During November, the prices of the premium grades have fallen about $1.50 per barrel.

Aminu cautioned that if the cartel kept its output high after the winter, it could run into "serious trouble."

"The challenge is to ensure that we do not allow (prices) to drop in the second and third quarter as a result of excess oil in the market," he said.

The cartel has been following a "free-for-all" pumping policy since Iraq's invasion of Kuwait in August 1990. It threw out its quota system so countries could produce as much as possible to make up for lost Iraqi and Kuwaiti crude.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Cite this article

Cited article

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

OPEC Ministers Expect to Keep Taps Wide Open


Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?