No World Oil Shortage Despite Price Increases, say Saudis

www.voanews.com VOA News 12 Jan 2003, 12:51 UTC

Leading oil producer Saudi Arabia says there is no oil shortage on world markets because of the ongoing labor unrest in Venezuela.

Speaking after an emergency meeting of OPEC ministers in Vienna, Saudi Oil Minister Ali al-Naimi said the 11-nation cartel would not allow a global shortage to occur.

OPEC officials say the cartel already has taken steps to offset the production shortfall of two million barrels a day by Venezuela, which is the world's fifth largest oil producer, where a six-week-old strike has crippled oil exports.

However, Mr. al-Naimi ruled out raising the carter's overall production limit of 23 million barrels a day, saying an increase would flood the world oil market.

The Organization of Petroleum Exporting Countries convened Sunday's meeting, saying it wants to prevent disruptions in global oil supplies because of the strike in Venezuela and the possibility of war in Iraq, which also is an OPEC member.

Global oil prices last week shot up to a two-year high of $33 per barrel, well above OPEC's target range of $22-28 per barrel.

The United States has been urging the cartel to boost production to offset disruptions in Venezuela's oil exports.

Before its labor troubles, the South American nation was supplying 13 percent of U.S. oil imports. Oil production in Venezuela has fallen to virtually nothing since a general strike against the country's president, Hugo Chavez, began six weeks ago.

Algeria, Indonesia, Saudi Arabia, Nigeria, Libya, Iraq, Iran, Kuwait, United Arab Emirates, Venezuela and Qatar make up OPEC.

Some information for this report provided by AP, AFP and Reuters.