OPEC Output Cut to Affect Market
April 4, 1998 - 0:0
VIENNA - Iran's Oil Minister Bijan Namdar Zanganeh said here Tuesday that the decision by members of the Organization of Petroleum Exporting Countries (OPEC) to reduce output will create changes in oil market. Speaking to reporters at the end of the extraordinary meeting of OPEC oil ministers, he said the meeting decided to implement the Riyadh Agreement, which means cutting down OPEC production by 1,245,000 barrels a day.
The Iranian minister added that the decision will be valid until the end of 1998. Asked on likelihood of increase in oil production by non-OPEC oil producers to fill the gap created by OPEC output cut, he said certain non-OPEC producers have been cooperating with OPEC by reducing their production. Several non-OPEC oil producers including Norway, Mexico, Yemen and Egpyt have indicated that they are willing to cut their production by 300,000-400,000 barrels a day.
OPEC oil prices which dropped to below $11 in the past two weeks, stabilized right before the Vienna Meeting and each barrel of oil for delivery in April was sold for $14.13. (IRNA)
The Iranian minister added that the decision will be valid until the end of 1998. Asked on likelihood of increase in oil production by non-OPEC oil producers to fill the gap created by OPEC output cut, he said certain non-OPEC producers have been cooperating with OPEC by reducing their production. Several non-OPEC oil producers including Norway, Mexico, Yemen and Egpyt have indicated that they are willing to cut their production by 300,000-400,000 barrels a day.
OPEC oil prices which dropped to below $11 in the past two weeks, stabilized right before the Vienna Meeting and each barrel of oil for delivery in April was sold for $14.13. (IRNA)