The Battalion. (College Station, Tex.) 1893-current, March 30, 2000, Image 10

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    Page 10
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March 30. 2(X
THE BATTALION
fluirsday, March?
Iran to increase oil productiojW
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VIENNA, Austria (AP) — Denounc
ing U.S. pressure but fearing loss of mar
ket share, Iran relented Wednesday and
agreed to join other OPEC members in
increasing oil production to stem rising
gasoline prices.
Mexico, a leading oil producer that
is not an OPEC member, also planned
to pump more oil as part of an agree
ment with the Organization of Petrole
um Exporting Countries.
Iran’s representa'tive to OPEC, Hos-
sein Kazempour Ardebili, announced the
decision to step up production hours af
ter nine other OPEC members agreed to
boost crude oil out-
Since that intraday trading high, oil has retreated 23 percent.
Analysts said that even with the Iranian announcement, they did not expea
line prices in the United States to drop by more than a few cents per gallon.
“The point to make is that one dollar a gallon gasoline was very unrealisti
Raad Alkadiri, an analyst with The Petroleum Finance Company, a Washingtoi
\ns pe
JASON UNI
The Battalio
M SC E.L. MILLER SCIENCE
AND TECHNOLOGY COMMITTEE
I o Hi c \l (ion it n (I IS i' \ 0 n (l..
put by 6.3 percent,
a figure industry
analysts said offers
scant relief for con
sumers staggered
by skyrocketing
prices for gasoline.
If Iran increas
es production by
the full 264,000
barrels a day it
would have been
required to do un
der the OPEC
agreement an
nounced early
“The point to
make is that one
dollar a gallon
gasoline was very
unrealistic. ”
April GlIi, 2000
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FEATURING
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Wednesday, the cartel would boost total
output by 7.5 percent over the ceiling set
when it cut production last year.
Mexico’s energy minister, Luis
Tellez, said Wednesday that his country
would increase crude oil exports by
150,000 barrels a day.
Mexico is not a member of OPEC,
but played a key role in forging agree
ments in 1998 and 1999 that reduced
global oil supply, leading to the increase
in prices. As part of those agreements,
Mexico reduced its oil exports by
325,000 barrels a day.
Tellez told a news conference that the
decision to restore some of those exports
was made in “consensus” with OPEC.
In trading Wednesday on the New
York Mercantile Exchange, the main
blend of U.S. crude fell 58 cents to
$26.51 a barrel in contracts for May de
livery. On the International Petroleum
Exchange in London, the contract for
May delivery of Brent crude oil was
down $91 cents a barrel Wednesday at
$24.60.
U.S. oil prices had tripled to a March 8
peak of$34.37 per barrel following OPEC’s
decision last March to slash production.
consultancy.
“It was the result of a very unusual sit
uation,” brought about by OPEC’s in
crease in production in 1997 just before
the Asian financial crisis depressed de
mand and created a supply glut.
Ardebili said Iran initially balked at
going along with the rest of OPEC to
protest American pressure on the cartel.
Iran had questioned whether there was
such a shortage of
crude oil that they
needed to increase
production by as
much as the Saudis
and Kuwaitis had
insisted.
“The U.S. inter
vention was beyond
expectations,” he
said. “Never in the
history of OPEC has
this been experi- :
enced before. “
Ardebili, how
ever, said Iran feared a loss of market
Clinton: gas pri
to fall by a dime
— Raad Alkadiri
an analyst with The Petroleum
Finance Company
WASHINGTON (AP)
OPEC production increases
short of what
the United
States had
wanted, Clinton
administration
officials said
the oil boost
should force
down gasoline
prices by more clintok
than a dime a
gallon by mid-summer.
Still, some energy indust!)
alysts questioned how mud?
additional oil will impact price
the pump and whether refa
will be able to overcome
in Lawrence, I
uble this wee
roll into tow
us of the Tex;
seball series I
another Big 1.
each team’s n
Gremmingt
first time sit
'99 season,
Iwins, Jason
laying on the
— for the fi
,, they will he
uniforms,
is the only
in said.
Redback in the
nd Dallas. Th
•eball diamond
with their stur
[equally rema
stocks and produce enq the next decad
gasoline to meet heavy surs
driving demand.
share if it refuses to join others in raising
production.
“We will do our proportion from the
current agreement,” Ardebili said.
“We are not going to give up our share,
and beyond that, we will wait and see.”
Although Ardebili did not specifically
say Iran would meet the 264,000 barrels-
a-day target, industry analysts believe it
must do so to prevent losing business to
the Saudis.
Analysts estimate Iran’s excess capac
ity at 300,000 barrels a day, meaning the
Iranians would be producing near the
maximum.
Before the Iranian announcement, the
Clinton administration, citing Energy De
partment research, projected the OPEC in
crease would bring down U.S. unleaded
gasoline prices by 11 cents to 18 cents a
gallon by late summer.
On Tuesday, ministers of the 11 -nation j
cartel said nine members would begin
pumping an additional 1.45 million bar- I
rels of oil a day.
The increase becomes effective Satur- j
day, after existing production cuts expire. L
“We will continue to doss mas ^. j esse ^
monitor developments in the wo
oil markets in the coming moft
President Clinton said Tuesda.
pressing a word of caution.
Nevertheless, he called!!
OPEC production increase!
“positive development" that*
help sustain economic grow
A trio of senior administrati
officials portrayed the OPEC
cision as a victory, although
had balked at the final
ment, and the 1.45 million-
day production increase was
than had been expected.
"We've achieved a large
our objective," Energy Seen
Bill Richardson said at a
House briefing. “I think our qi
diplomacy worked."
He said the increases by OPS
additional oil from non-OPEC com
tries as well as Iraq, and soi
"leakage” — or production aboi
the official quotas — will
enough to “help correct the
balances in today's oil market.
a pairing that 1
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5 brother couk
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iship. Itcontim
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April 1 st : Big Event and Songfest at Rudder
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April 2 nd : Kick-Off Event
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April 6 th : Awards Ceremony at Rudder rm 701
Sponsored by: Aggie 96.1 and the Arbors at Wolf Pen Creek
April 3 rd -5 th :
**AII profits go to Mothers Against Drunk Driving
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