Newspaper article THE JOURNAL RECORD

Saudi Arabia Not Anticipated to Surrender Production Share

Newspaper article THE JOURNAL RECORD

Saudi Arabia Not Anticipated to Surrender Production Share

Article excerpt

ABU DHABI, United Arab Emirates (AP) - Saudi Arabia, the world's largest oil exporter, will not surrender its majority share of production when ministers of the Organization of Petroleum Exporting Countries meet later this week, a report predicted Monday.

The respected Middle East Economic Survey reported that the Saudis will insist its share of OPEC's output remain at the current 24.46 percent even if non-proportionate quota increases are granted to other members of the cartel.

Ian Seymour, editor of the Cyprus-based oil industry newsletter, wrote after discussions with senior Saudi officials that ``there is no way in which Saudi Arabia would be prepared to surrender even a token part of its output share in order to facilitate agreement on a new quota system'' in Vienna.

Members of the 13-nation Organization of Petroleum Exporting Countries, have been squabbling over quota allocations and several nations have consistently produced beyond their established limits in open defiance of the OPEC ceilings.

OPEC is scheduled to meet Saturday in Vienna, Austria, to seek a formula to satisfy demands by various members for higher production limits while at the same time trying to avoid a major hike in the overall quota that could hurt prices.

World oil prices have remained relatively stable in recent months, thanks to strong demand from developing nations.

Oil ministers from Persian Gulf nations, including Saudi Arabia, held a strategy session here Monday in preparation for the OPEC meeting.

An official, speaking on condition of anoynmity, said ministers from the Gulf Cooperation Council ``discussed developments in the world oil market and reviewed future oil strategy for the council member states'' during a 90-minute session. …

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