- The Washington Times - Thursday, October 18, 2001

RIYADH, Saudi Arabia (AP) Oil giants Saudi Arabia and Iran yesterday called for more contact among petroleum producers to stabilize prices in world markets in the wake of the Sept. 11 terror attacks.
Saudi Oil Minister Ali Naimi and his visiting Iranian counterpart, Bijan Namdar Zangeneh, met in the Saudi capital Riyadh to discuss the situation but did not make any decision on their production levels.
Oil prices have been below the minimum in the target price range set by the Organization of the Petroleum Exporting Countries for 17 consecutive trading days, plunging after the terror attacks in the United States. OPEC had said it would raise production by 500,000 barrels a day if the price was below $22 a barrel for more than 10 trading days.
Mr. Naimi said OPEC's objective remains maintaining stability in the market and stabilizing the OPEC price level around $25 a barrel, which OPEC had managed to sustain most of the year before the Sept. 11 attacks.
Both ministers called for contacts between OPEC and non-OPEC producers to bring stability.
"All oil producers agree that $25 a barrel is a fair price for all," Mr. Naimi told reporters. "Any action that we may take will make sure that it won't hinder world economic growth."
"OPEC must establish contacts with major producers outside of the organization and try to convince them of the necessity of creating suitable conditions in the oil market," Mr. Zangeneh said.
Mr. Naimi declined to predict the size of a possible production cut in the short term. He also said there has been no U.S. pressure on OPEC to refrain from an output cut to raise prices.
The value of OPEC's basket of seven crude oils averaged $19.48 a barrel Tuesday. OPEC's target price band is $22-to-$28 a barrel. The mechanism is broadly intended to keep prices stable and in a range to suit producers and consumers.
In New York, crude for November delivery was down 17 cents to $21.83 in trading on the New York Mercantile Exchange.
OPEC members are next scheduled to meet Nov. 14.
Saudi Arabia is OPEC's most powerful member while Iran is the cartel's second-largest producer.

Sign up for Daily Newsletters

Copyright © 2019 The Washington Times, LLC. Click here for reprint permission.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.


Click to Read More and View Comments

Click to Hide