INTRODUCTION: At a meeting in Geneva, 10 of the 13 members of OPEC- the Organisation of Petroleum Exporting Countries -- have decided to cut production by at least 10 per cent from the beginning of June.
GV INT Conference centre, delegates arriving.
SV PULL BACK TO GV Delegates arriving.
LV Delegates entering conference room.
LV PAN Delegates seated at conference.
SV TILT UP OPEC President, Dr. Humberto Calderon.
SV Sheikh Yamani of Saudi Arabia.
SV PULL BACK TO LV & PAN OPEC President addressing conference.
GV ZOOM IN & OUT Delegates seated listening.
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Background: INTRODUCTION: At a meeting in Geneva, 10 of the 13 members of OPEC- the Organisation of Petroleum Exporting Countries -- have decided to cut production by at least 10 per cent from the beginning of June. But Saudi Arabia, the world's largest oil exporter, refused on Tuesday (26 May) to reduce its oil production or to raise its oil price during the present oil glut.
SYNOPSIS: In its drive to stabilise the world price of oil, Saudi Arabia secured a price freeze at the meeting but refused demands to stop flooding the market with its cut-price crude. The oil glut makes it impossible for all but the Saudis to raise prices and the meeting decided to freeze them until December.
The other two countries refusing to cut production were Iran and Iraq who are trying to boost oil sales restricted by the Gulf war. Saudi Arabia itself was expected to reduce its output before the end of this year. Saudi Oil Minister Ahmed Zaki Yamani wanted price cuts by the others in return for a Saudi increase, but these refused.
At the end of two-day conference, OPEC President Dr. Humberto Calderon said he was pleased so many delegates had gathered for the vital discussions.
A major decision at the oil talks was one to revise a Saudi-backed long-term price strategy. This is aimed at stabilising world economise by linking OPEC prices with inflation and the West's economic growth rates. It's hoped details will be prepared before December's pricing meeting in Abu Dhabi.