INTRODUCTION: Several important members of OPEC -- the Organisation of Oil Exporting Countries -- have been discussing the reduction of Saudi Arabia's huge oil output of over 10 million barrels a day.
SV INTERIOR Oil Ministers seated in conference room
SV Sheikh Ahmed Zaki Yamani, Saudi Minister of Petroleum and Mineral Resources
SV Kuwaiti Oil Minister, Sheikh Ali Al Khalifa Alsabah
SV United Emirates Minister of Petroleum Dr. Mana Saeed Al Otaiban
SV Bahzeini Minister of Development and Industry, Mr. Yussef Al Shirawi
SV Iraqi Oil Minister Mr. Tayeh Abdul Kari
SV Algerian Oil Minister Mr. Ralqacem Nabj
SV Libyan Oil Minister Mr. Abdul Salam Zagmar
SV PAN Delegates at meeting
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Background: INTRODUCTION: Several important members of OPEC -- the Organisation of Oil Exporting Countries -- have been discussing the reduction of Saudi Arabia's huge oil output of over 10 million barrels a day. This near record production has been kept up by the Saudi to try and force down the higher OPEC prices and prepare the way for a unified pricing system. An attempt to solve the problem was made by a deputation of Arab oil ministers on Thursday (16 July) at a surprise meeting in Taiz. Saudi Arabia's summer capital.
SYNOPSIS: No details of any agreement were disclosed after the talks between Saudi Oil Minister Ahmed Zaki Yamani and ministers from Kuwait, the United Arab Emirates, Bahrein, Iraq, Algeria and the Libyan Jamahiriyah. The high Saudi production has forced most other OPEC countries to cut production but the majority have refused to reduce prices. Some of them are beginning to be seriously affected by falling revenues.
Saudi oil at 32 U.S. dollars a barrel is cheaper than that sold by other OPEC countries. Their sales have been reduced in a market hit by recession and the drive by industrialised countries to switch to less expensive forms of energy. OPEC's total output, recently close to 30 million barrels a day, is down to about 22 million. Saudi Arabia alone is keeping up a high production.