OPEC Will Meet to Discuss Oil Output, Venezuela Says

Venezuelan Energy Minister Celestino Armas said Wednesday that all 13 OPEC members may meet Sunday in Vienna in response to the call from Saudi Arabia for an urgent meeting to discuss possible oil production increases.

“Possibly what we’re going to have is a consultative meeting of the 13 members” of the cartel, Armas told reporters.

He said the meeting would be held Sunday in Vienna, but he would not elaborate.

Saudi Arabia and Venezuela have called for an urgent meeting of the Organization of Petroleum Exporting Countries to discuss the possibility of increasing output because of the sharp rise in world prices.

A world embargo of Iraq and Kuwait, imposed after Iraq overran its small neighbor Aug. 2, has taken 4 million barrels of oil daily off world markets.

Saudi Arabia and Venezuela want to make up most of that through increased production but hope to get OPEC approval to do it. Officials from both nations have said that although they prefer an OPEC agreement, they will raise their outputs if the organization fails to meet.

Under bylaws of the cartel, seven of the 13 member nations must approve before a meeting can be called. But it takes a quorum of 10 to pass any resolutions.

Venezuela’s President Carlos Andres Perez has said that Ecuador, Kuwait, the United Arab Emirates and Qatar have backed the special meeting, along with Saudi Arabia and Venezuela. Only Iran is categorically opposed, he has said.

Perez has said that Venezuela could increase its production by 500,000 barrels per day above the country’s production quota of 1.945 million barrels per day.

Perez said Monday that production increases are vital to keeping world oil prices relatively stable and preventing them from shooting higher and potentially hurting developing nations.