P.M. BRIEFING : OPEC Squabbles Over Oil Quotas
OPEC oil ministers widely agreed today that prevailing firm prices and rising demand will allow a rise in the cartel’s oil output during the second half of the year. However, there were angry differences among the 13 members of the Organization of Petroleum Exporting Countries on how to share such an increase.
OPEC has a current official--although heavily violated--production ceiling of 18.5 million barrels a day while second-half demand for its oil is estimated at more than 20 million barrels a day. OPEC’s official target price is $18 a barrel.
Mediating in behind-the-scenes bargaining at the regular mid-year conference, OPEC President Rilwanu Lukman of Nigeria achieved basic agreement on raising the production ceiling by up to 1.5 million barrels a day, participants said. But Kuwait and the United Arab Emirates and, to a lesser extent, smaller members Ecuador and Gabon, demanded special higher allowances above and beyond normal proportional quotas.
“The Kuwaitis and the UAE say they will refuse to sign any accord unless they obtain extra allowances,” a Gulf delegate said.
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