A Global Journal Report: Oil Prices Threaten Recovery As Saudis Try to Reassure U.S

Oil prices hovering near $30 a barrel on fears of a U.S.-Iraq war are threatening to impede a U.S. economic recovery, even as Saudis and some other OPEC members said they would make up shortfalls if there's an attack. With the price of a barrel peaking at $30.11 last week and Saudi ambassador P...

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Bibliographic Details
Published inThe Wall Street journal. Eastern edition
Main Author By Thaddeus Herrick in Houston, Jon E. Hilsenrath in New York and Bhushan Bahree in Paris, with Phillip Day in Singapore
Format Newspaper Article
LanguageEnglish
Published New York, N.Y Dow Jones & Company Inc 26.08.2002
EditionEastern edition
Subjects
Cartels
Consumer spending
Crude oil
Crude oil prices
Economic conditions
Economic recovery
Economists
Energy
Gasoline prices
Inventory
Petroleum industry
Profits
Quotas
Supplies
United States
United States > US
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Summary:Oil prices hovering near $30 a barrel on fears of a U.S.-Iraq war are threatening to impede a U.S. economic recovery, even as Saudis and some other OPEC members said they would make up shortfalls if there's an attack. With the price of a barrel peaking at $30.11 last week and Saudi ambassador Prince Bandar bin Sultan scheduled to meet President George W. Bush at his Texas ranch tomorrow, Saudi officials sought to reassure the markets and U.S. officials. They and other OPEC suppliers who see Iraq as a regional threat have indicated to the Bush administration that they will sell more oil and fill any shortfalls that might result from war. Because of its cuts in production, OPEC has spare capacity of about six million barrels a day that it could put into the market, most of it in Saudi Arabia. Next year, OPEC estimates demand will rise by a modest 790,000 barrels a day to 76.95 million barrels a day, with non-OPEC supply up 920,000 barrels a day. The Paris-based International Energy Agency sees non-OPEC supply rising less, by 700,000 barrels a day next year, but OPEC officials stick to their forecast. "In the longer term, this doesn't appear to be a market in need of oil," said Mr. [Adnan A. Shihab-Eldin], the OPEC economist. "There is plenty of supply."
ISSN:0099-9660