OPEC to Boost Production Amid Oil Cost Complaints

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VIENNA (Reuters) - OPEC exporters
prepared on Saturday to open the oil
taps for a third time this year amid
a growing chorus of complaints around the
globe over rising fuel bills.

The Organization of the Petroleum
Exporting Countries is expected to lift
supply to soothe concerns that rising
energy costs could spark inflation and
hamper world economic growth.

Delegates said leading cartel power
Saudi Arabia opened the bidding on
more oil by proposing an increase of
one million barrels daily over limits now
of 25.4 million for 10 members,
excluding sanctions-bound Iraq.

. . .

``With oil prices in the mid-30s there is
a lot more probability of taking oil
from the SPR,'' said Yergin. ``There is a
lot of concern about the winter and
it is being given real consideration,'' he said.

Yahoo! News

-- spider (spider0@usa.net), September 09, 2000


Most OPEC countries are already pumping at capacity. These are the key words in this news story.

This means, simply, that any increase in output by OPEC will mean less money in their pockets, because the price of oil would drop. So, it doesn't take a genuis to figure how this majority will vote--for the most limited increase they can hold to.

-- Uncle Fred (dogboy45@bigfoot.com), September 09, 2000.

I agree. They know they can't hold to no increase at all, because of the PR backlash they'd receive from their oil consuming customer countries. So, they will probably try to hold at a minimum level of increase.

-- Billiver (billiver@al.com), September 09, 2000.

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