OPEC meet should address quota violations: Report
Thursday, April 24 2003 - 02:13 AM WIB
"The volume of oil supplies on sale holds negative impact on the prices and is a serious threat unless the situation is redressed," Al Nassiri said in a statement to the official UAE news agency (WAM) in Vienna on Wednesday.
He maintained that the situation "requires strict adherence to output quotas by member states as a first step before further measures could be considered, if need be."
"First of all, the problem of surplus barrels in the market must be addressed," the UAE Minister stressed.
He said that for a decision, maintaining oil output at the current level of 24.5 million barrels per day (bpd), to have an instantaneous and strong impact on the market, overruns in quotas must be dealt with.
"Only then can OPEC take the proper measures in time with regard to reduction," Al Nassiri added. He said that putting an end to "major acts of violation" in quotas would hold back slump in prices.
On whether the return of Iraqi oil supplies to market would affect the prices to the extent that dictates on OPEC to re-draw its production policies, Al Nassiri said such a return is natural since Iraq is an important OPEC member and matters should be considered in a right way to avoid any untoward situation.
On Iraq's representation in OPEC, the Minister said: "In principle, there must be a legitimate government in Iraq to aptly represent it. In our tomorrow's meeting we will concentrate on economic matters rather than political issues, which are left to governments and Foreign Ministers to adopt proper decisions on them."
He stressed that the continuation of Iraq's membership in OPEC was imperative and in the best interest of Iraq itself.
"The very existence of OPEC has effectively contributed in creating a status of equilibrium between the interests of producers and consumers alike," the UAE Petroleum Minister said.
"If OPEC was not existent, the world would have sought to create it," he added. (*)