Opec ministers meet to slash oil production
Monday 22 March 1999
The meeting follows the agreement thrashed out by five oil ministers in The Hague on March 12, under which the 10 Opec members will cut production by 1.7 million barrels per day from next month. That corresponds to around 2.7 per cent of global output of crude.
Gulf officials were quoted yesterday on arrival in Vienna saying that the deal would result in Brent crude, the benchmark oil price, rising from its current level of around $13.45 a barrel to between $17 and $19 by the third quarter of this year.
Prices have already risen by around 40 per cent from their December lows in anticipation of further output cuts.
The deal struck earlier this month at the instigation of Saudi Arabia was endorsed by three more states - Kuwait, the United Arab Emirates and Qatar - at a meeting in Abu Dhabi yesterday. The Kuwaiti oil minister, Sheikh Saud Nasser al-Sabah, said after the meeting: "We are finished - it is all done."
What made the Hague deal possible was a decision by Saudi Arabia and Iran to bury the hatchet.
Officials said that progress had been made on the notoriously slippery issue of widespread non-compliance, which undermined the effectiveness of previous rounds of production cuts.
One Gulf official told agency reporters yesterday: "There are no fears this time about compliance. Every country is willing to comply fully. They have seen the consequences when they do otherwise."
However, oil industry executives say that producers are around 25 per cent short of meeting their agreed cutback targets and remain sceptical about the likelihood of things changing this time around.
Simon Calder looks at communities fighting back against the poachers
Arsenal 1 Everton 1: Substitute equalises with six minutes to go
Guide dog mauled while helping owner deliver Christmas cards
Chemical and radiation experts investigate after death of man found inside tent in field
Nelson Mandela’s complex bond with Britain
The poorest pay the price for austerity: Workers face biggest fall in living standards since Victorian era
10 stone five-year-old taken into care
- 1 Turning up the voice of America
- 2 The poorest pay the price for austerity: Workers face biggest fall in living standards since Victorian era
- 3 The man who made Femen: New film outs Victor Svyatski as the mastermind behind the protest group and its breast-baring stunts
- 4 An obsessive’s documenting of Israeli war crimes in Lebanon can show us how the West lost respect for international law
- 5 Mass murder in the Middle East is funded by our friends the Saudis
- < Previous
- Next >
iJobs Money & Business
£300 - £350 per day: Harrington Starr: SQL Server MI Developer needed for Euro...
£25000 - £50000 per annum + Benefits + Bonus: Harrington Starr: C++ Server Dev...
£300 - £350 per day: Harrington Starr: Leading Electronic Trading Software Ven...
£80000 - £100000 per annum + benefits + bonus: Harrington Starr: Project Manag...