Amadeusz Juskowiak

Saudi arabia reiterates commitment to opec pact

Saudi Arabian Oil Minister Hisham Nazer reiterated the kingdoms commitment to last Decembers OPEC accord to boost world oil prices and stabilise the market the official Saudi Press Agency SPA said

Asked by the agency about the recent fall in free market oil prices Nazer said Saudi Arabia is fully adhering by the

Accord and it will never sell its oil at prices below the pronounced prices under any circumstance

Nazer quoted by SPA said recent pressure on free market prices may be because of the end of the northern hemisphere winter season and the glut in the market

Saudi Arabia was a main architect of the December accord under which OPEC agreed to lower its total output ceiling by 725 pct to 158 mln barrels per day bpd and return to fixed prices of around 18 dlrs a barrel

The agreement followed a year of turmoil on oil markets which saw prices slump briefly to under 10 dlrs a barrel in mid1986 from about 30 dlrs in late 1985 Free market prices are currently just over 16 dlrs

Nazer was quoted by the SPA as saying Saudi Arabias adherence to the accord was shown clearly in the oil market

He said contacts among members of OPEC showed they all wanted to stick to the accord

In Jamaica OPEC President Rilwanu Lukman who is also Nigerian Oil Minister said the group planned to stick with the pricing agreement

We are aware of the negative forces trying to manipulate the operations of the market but we are satisfied that the fundamentals exist for stable market conditions he said

Kuwaits Oil Minister Sheikh Ali alKhalifa alSabah said in remarks published in the emirates daily AlQabas there were no plans for an emergency OPEC meeting to review prices

Traders and analysts in international oil markets estimate OPEC is producing up to one mln bpd above the 158 mln ceiling

They named Kuwait and the United Arab Emirates along with the much smaller producer Ecuador among those producing above quota Sheikh Ali denied that Kuwait was overproducing