Members of the Organisation of Petroleum Exporting Countries (OPEC), meeting in Geneva, agreed on October 29 to cut oil production by one-and-a-half million barrels a day.
1. LV INTERIOR Delegations assembling for meeting, with newsmen mingling. 0.05
2. CU PAN Shaikh Yamani, Oil Minister of Saudi Arabia, reading document. 0.13
3. CU Iranian Oil Minister (nearest camera). 0.20
4. SV Other delegates seated. 0.25
5. LV PAN Delegates watch as newsmen leave. 0.29
6. CU Indonesian delegate Dr. Subroto makes statement after meeting. (English SOT) 1.26
TRANSCRIPT: SUBROTO: (SEQ 6) "Frank and friendly discussions took place where we identified three problems that will require out attention in these coming days. Those three problems are first of all about the defence of the market price of 29 dollar per barrel by our production cut. The second problem is the problem or restoring and strengthening discipline among our member countries so that decisions of OPEC are followed strictly. And the third concern problems of differential."
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Background: GENEVA, SWITZERLAND
Members of the Organisation of Petroleum Exporting Countries (OPEC), meeting in Geneva, agreed on October 29 to cut oil production by one-and-a-half million barrels a day. The move is an attempt to protect the OPEC price of twenty nine dollars (twenty five pounds) per barrel. Non-OPEC Producers Norway and the United Kingdom recently cut price of their light crude oil following the example of one of OPEC's poorer members, Nigeria. The plan to maintain prices by cutting output to sixteen million barrels a day leaves OPEC with other problems, particularly the allocation of reduced quotas to member states. Nigeria has already said they it will not accept any reduction, while Iran is now producing only half of its permitted output because of the Gulf war. Saudi Oil Minister Sheikh Yamani has not said Whether Saudi Arabia will accept a further cut; a previous solution to OPEC quota problems. Another problem which surfaced at the meeting and so far remains unresolved is the differential pricing of light and heavy crude oil. OPEC policy has been to maintain a four dollar (three pound) per barrel gap between the price paid for light and heavy crude, but improved refining techniques have increased the value of heavy crude which now sells for only one-and-a-half dollars per barrel less than light crude. The Indonesian delegate, Dr. Subroto, said after the meeting that OPEC had identified the areas which would require its attention.