Meeting in Vienna on Saturday (27 September), the OPEC oil producers agreed to increase the price of oil by ten per cent.
Meeting in Vienna on Saturday (27 September), the OPEC oil producers agreed to increase the price of oil by ten per cent. The announcement by Iranian Interior Minister, Jamshid Amouzegar, followed a four day wrangle after the Saudi Arabians originally opposed any increase at all -- and then held out for only a five per cent rise.
Mr. Amouzegar, who has special responsibility for oil in the Iranian Government, told waiting newsmen that the ten per cent increase was the fixed price, frozen until 30 June 1976.
The average price of OPEC oil will cost 1.05 United States dollars more per barrel -- 11.51 instead of 10,46 dollars.
Mr. Amouzegar added that the actual increase in some cases might be just slightly higher for some countries. Between 10.1 per cent and 10.4 per cent.
The increases adds about 10,000 million dollars (U.S.) to the world's annual oil bill and will produce new strains for Western economies, already suffering a serious recessionary turndown. But reports form Vienna said that experts do not regard the rise as calamitous.
However, observers said that the new price was in line with that expected by Western governments and represented a big climbdown by the price hawks at the oil talks