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OPEC Not Participate in Oil Strike

Posted April. 11, 2002 08:57,   


The price of oil became steady on the 9th as Israel pulled troops out of West Bank, and the Organization of Petroleum Exporting Countries (OPEC) members objected to the ban of oil export.

May deliveries of Brent crude closed at 26.08 dollars decreased by 94 cents from yesterday on London`s International Petroleum Exchange.

Previously, Financial Times reported on the 10th that Saudi Arabia`s oil minister Ali al-Naimi reiterated, “I reject the use of oil as an economic weapon against western governments in protest at Israel`s military action in the West Bank”.

Kuwait Deputy Oil Secretary Esa Al Kun said, “using oil as a weapon not only loosen the Arab allies, but also do harm to the economy in Gulf area. ” Qatar also expressed rejecting the halt of oil exports. Iran, which had welcomed Iraq`s halt of oil exports, said, “we won`t stop exporting oil alone unless Arabs take measures against Israel in concert. ”

However, analysts forecast that fluctuation of oil price continues for some more weeks. Especially the strike of the Oil Union of Venezuela, world`s fourth-largest oil exporter, is the main variable. The labors of state oil company PDVSA, the largest union in Venezuela, are striking for 24 hours a day from 9th(local time) insisting that President Hugo Chavez should rescind his appointment of a company board executives.

Financial Times reported that Roger Diwan, an analyst at Washington based Petroleum Finance, warned, “if the strike of Venezuela goes on, 2 million barrels are short in supply, and along with the Iraq`s halt of oil exports, vacuum of total 4 million barrel will be produced. ”

Times warned in its editorial, “continuous high price of oil might damage the countries including America, which have serious deficit, from the price rise of exports. ”