The three-day conference of the World's major oil exporting countries ended on Friday (17 December) amid sharp disagreement on the level of future price increases.
SV Leaders of various delegations arriving at conference room (2 shots)
SV PAN Delegates seated around conference table including Sheikh Yamani seated with other Saudi Arabian delegates (2 shots)
SCU AND SV Delegates leaving including Saudi Arabians and United Arab Emirates (3 shots)
CU Yamani speaking at news conference
TRANSCRIPT: DRAKE: The failure to agree a single price increase came as a surprise. For despite the angry arguments during the two-and-a-half day conference, most people expected a unanimous decision. Instead eleven of the countries, led by Iraq, insisted on a ten per cent rise now and another five per cent increase next July. But Saudi Arabia, the most influential of the producing nations, refused to agree, and instead, along with her close ally the United Arab Emirates, presented a strong challenge to the others by sticking on a maximum of five per cent.
SEQ. 4: YAMANT: In the past we didn't have our own price. In the past the Saudis were supposed to abide by the resolutions in OPEC. The others were free because we didn't have the formula for value differentials. There were so many countries, like the Iraqis, the Libyans, the Nigerians -- they used to drop their market at a cheap price -- their oil at a...at a cheap price. And no-one talked about it. So in the past there were so many differences in the pricing structure with the others. Right now, what is happening is another difference but the other way round.
PALMER: Won't this new price structure cause really a price war?
YAMANI: No, no. what happened in the past is happening now. In the past the Iraqis reduced their prices by almost a dollar and there was no price war as such.
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Background: The three-day conference of the World's major oil exporting countries ended on Friday (17 December) amid sharp disagreement on the level of future price increases. The majority of the 13-nation Organisation of Petroleum Exporting Countries (OPEC) confirmed their intention to put up their oil prices by 10 per cent on the first of January, and by another five per cent six months later. But two OPEC members -- Saudi Arabia and the United Arab Emirates -- announced they would hold their price increase to five per cent for the entire year. Chris Drake reports on the end of the conference, while the Saudi Arabian Oil Minister, Sheikh Ahmed Zaki Yanani told John Palmer why he didn't think the decision would mean an oil price war.