U.S. Energy Secretary Bill Richardson plans to meet the OPEC'S new Secretary General, Ali Rodriguez, in Vienna on the weekend of Jan. 6-7, according to Wolfgang Vale of Energy News Live.
Richardson believes world oil inventories are "abnormally low" and will make the case to Rodriguez that current production levels need to be maintained to allow them to rebuild, according to a Department of Energy spokeswoman.
"Stocks are beginning to build, and we believe production levels should be maintained until stocks reach normal levels," Richardson said in a prepared statement.
OPEC's Secretary General Ali Rodriguez, was quote in the press to said the U.S. is partly to blame for the drop in prices because it released 30 million barrels into a market in which inventories were building. "If OPEC doesn't take action, prices could collapse" .
"If these prices continue, below the lower limit of the ($22-28/bbl) price band, all members are in a unanimous accord to automatically cut production in 500.000 barrels per day, on January 8 " Rodriguez said to the press on Friday 22, before leaving for his new post in Vienna.
OPEC oil ministers will meet at their Vienna headquarters Jan. 17 for an extraordinary meeting to decide future oil-production targets.
Several members of the oil-exporters' group have been calling for a production cut to avert a possible price crash in the second quarter of 2001.
Oil futures prices on the New York Mercantile Exchange jumped Friday in thin holiday-season trading on anticipation OPEC will cut production.
By the early afternoon, the front-month February crude contract had risen 85 cents to $26.95 a barrel. reported Bridge News.
By Elio Ohep
© 2000 Mena Report (www.menareport.com)
