OPEC stress importance of stability in oil market
Regional-Algeria, Economics, 3/16/2002

''The equilibrium of the crude market and the stability of prices around 25 dollars the barrel have been determining elements in the decision to maintain restrictions of production (2mbj starting from January 1st2002) taken prises in Cairo on December 28, decisions to which adhere more and more out of OPEC producers '', Algerian minister of energy and mines Chakib Khelil commented.

The Algerian news agency APS qouted him saying ''We know that it is impossible for the majority of oil producing countries, which are also gas producers, and which a great part of their incomes from the export of hydrocarbons, to develop new fields and set the required infrastructure for production, transport and export without having an oil price around 25 US $, which is the equivalent in gas price of 4.5 US $..per million BTU."

"To guarantee such a policy, the OPEC endowed itself in March 2000 with a mechanism of prices regulation in a basket of 22, 28 dollars, it was recalled. This mechanism applies that OPEC countries (Iraq out of quotas) decrease of 500.000 barrels per day their global production in the case where prices are less than 22 dollars the barrel during ten successive quotations. The quantity of 500.000 barrels per day will be supplied to the market in the case of a price superior to 28 US dollars during twenty successive quotations," APS said.

The minister said "This mechanism was frozen for moment and voluntarily by the OPEC since September because we privilege consultation between OPEC producers and non-OPEC producers." APS reported today.

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