In Brief : Soviets, Arabs to Discuss Oil Prices
Gulf Arab states will hold talks with the Soviet Union, the world’s biggest oil producer, in a new bid to strengthen world oil prices through dialogue between the Organization of Petroleum Exporting Countries and non-OPEC producers, officials said.
The initiative, which was being reviewed today by the Gulf Cooperation Council summit, is designed to support a new oil output accord by OPEC that seeks oil prices of $18 a barrel.
The Gulf Cooperation Council has 40% of the world’s oil reserves and joins OPEC members Saudi Arabia, Kuwait, Qatar and the United Arab Emirates with non-OPEC Bahrain and Oman.
The Oman News Agency reported today that Omani Oil Minister Said bin Ahmed Shanfari will visit Moscow on Jan. 1 to enlist the help of the Soviet Union, which is not a member of OPEC, in stabilizing the world oil market.
A world oil glut caused by higher production from both OPEC and non-OPEC states sent prices plunging in October to as low as $8 below OPEC’s $18-a-barrel benchmark. Prices recovered to about $14 a barrel after OPEC agreed last month to cut output by about 4 million barrels per day to 18.5 million daily in the first half of 1989.
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