DOHA, 4 November 2003 — Gulf producers, meeting in the Qatari capital late Sunday, said they were striving to maintain stability in the world crude market as Saudi Arabia described a price of $25 a barrel as good for both suppliers and consumers.
The Organization of Petroleum Exporting Countries (OPEC) “should not be seen to be seeking the highest price, but rather a fair price reflecting the reality of supply and demand in the world market,” said Qatar’s Oil Minister Abdullah ibn Hamad Al-Attiyah, who is also OPEC’s president, in opening remarks.
“Qatar, along with other oil producers in the Gulf Cooperation Council (GCC) and OPEC, pays much attention to stability on the oil market,” said Attiyah, who chaired the meeting of oil ministers from Qatar’s GCC partners Bahrain, Kuwait, Oman, Saudi Arabia and the United Arab Emirates. “This means meeting the demand for oil within OPEC’s price band” of $22-$28 a barrel, he said.
After the meeting, Saudi Minister of Petroleum and Mineral Resources Ali Al-Naimi said market stability would be sought at “any cost” and confirmed the group’s commitment to the price band but added that “we are after, and I have said it many times, after a price of $25 (per barrel).” He said that this price was “fair” for both consumers and producers.
Naimi brushed aside talk of further cuts in production on top of the 900,000 barrels per day cut that went into effect Saturday as “premature” and likened it to “guessing” in the absence of fresh market data regarding inventories and demand.
“The data is not at hand right now to say what the decision is going to be,” when the 11-member organization meets again in Vienna on Dec. 4, said Naimi.
Top oil exporter Saudi Arabia along with Kuwait, Qatar and the UAE are OPEC members. OPEC’s Secretary General Alvaro Silva-Calderon predicted Thursday that oil supply in 2004 would surpass demand thereby putting downward pressure on prices and said the OPEC would adjust production if necessary but refused to speculate what exactly it might do.
London Brent crude futures by 1645 GMT had slipped 29 cents to $27.50 a barrel while New York crude dipped 24 cents to $28.87.
But a proposal floated by Qatar before the meeting to build a pipeline that would connect all GCC countries and allow for the export of crude oil from the Arabian Sea received lukewarm response from other ministers Sunday.
Attiyah said the ministers had agreed to study further the proposal, which is aimed at diversifying the region’s export routes. He also urged his fellow Gulf Arab ministers to support gas-rich Qatar’s plans to develop gas as “a clean source of energy”.
