Gadhafi: Freeze Oil Production

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Gadhafi: Freeze Oil Production

The Associated Press, Mon 25 Dec 2000 TRIPOLI, Libya (AP) — Oil-producing nations should consider stopping all pumping for one or two years to fend off any attempts to lower world oil prices, Libyan leader Moammar Gadhafi said in a letter to Venezuelan President Hugo Chavez that was made public Monday.

The letter, published in state-run Libyan newspapers, appeared to be Gadhafi's response to Chavez's call Sunday on members of the Organization of Petroleum Exporting Countries to fight efforts to reduce the price of oil, his country's main export. Chavez had accused some oil-consuming countries of playing ``a dirty game'' of trying to push prices below $10 a barrel.

``Since the issue is one of aggression on the resources of the people of OPEC, then our last resort might be halting oil pumping completely for a year or two,'' Gadhafi said in his letter.

Halting production, Gadhafi wrote, is ``a means of defending ourselves and our interests.''

Last week, oil prices reached their lowest level in eight months, dropping to less than $22 a barrel. Under OPEC's pricing system, production decreases by 500,000 barrels a day if oil prices remain below $22 a barrel for 10 straight business days.

Venezuelan Oil Minister Ali Rodriguez, who is also OPEC's president, has said the cartel likely will cut production in January if world oil prices continue dropping. Several OPEC members favor the suggestion.

http://www.worldnews.com/?t=print.txt&action=display&article=5003280

-- Martin Thompson (mthom1927@aol.com), December 25, 2000


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