OPEC mulls extraordinary meeting in early August

No 16/2001
Vienna, Austria July 23, 2001

OPEC mulls extraordinary meeting in early August—Rodríguez

OPEC Secretary General, Dr Alí Rodríguez-Araque, today said that he was consulting all OPEC Ministers over the possibility of holding an Extraordinary Meeting of the OPEC Conference in early August, which could eventually decide on a production cut.

"There are many uncertainties in the market right now, including the present world economic performance, as well as supply and demand projections," he told the OPEC News Agency.

"OPEC is taking a much more proactive role in monitoring market developments and we feel there might be a need to meet ahead of our ordinary meeting, scheduled for late September."

The OPEC Secretary General pointed out that several Ministers agreed with the need for an output cut, although as yet there were no specific figures.

Rodriguez-Araque has just returned to OPEC’s Headquarters in Vienna, after attending last week's environmental discussions in Bonn, Germany. There, he met with several OPEC Oil Ministers also participating at the meeting.

So far this year, OPEC has cut its output by 2.5 million b/d, in a bid to keep prices within the target range of 22-28 dollars per barrel for its basket. In the past week, the basket fell by over a dollar to 23.07 dollars per barrel.

"All our efforts are aimed at maintaining and strengthening market stability for the benefit of both producers and consumers alike.

"While high prices can hurt the consumer and curtail demand, low prices may discourage investment. Thus, they can be detrimental to the oil industry in general," the OPEC Secretary General concluded.

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