‘Riyadh Pact’ Oil Ministers to Discuss Cuts

Oil ministers from Venezuela, Mexico and Saudi Arabia will meet in Europe today to discuss the possibility of cutting output by at least 500,000 barrels a day, according to a source familiar with the meeting. “There is a recognition that the previous cuts did not do enough,” the source said, adding that the cuts “could be 500,000 barrels per day or maybe more.” Today’s meeting is expected to take place in Amsterdam. The news of the meeting triggered a surge in crude oil prices in Asian markets early today The three “Riyadh Pact” countries initiated in March a round of production cuts that eventually led to pledges from OPEC members and other producers to cut 1.5 million barrels per day. Oil prices initially recovered some of the 40% they had lost since the fall of 1997.