OPEC President says most members backing 2-mil b/d supply offer

Vienna (Platts)--20Sep2005

Most OPEC members are now supporting a proposal to offer 2-mil b/d of
surplus crude output capacity to world oil markets, the group's president
Sheikh Ahmed Fahed al-Sabah said Tuesday as ministers prepared for a second
day of talks in Vienna.
     "I believe most of the members will go for the 2-mil b/d," Sheikh Ahmed
told reporters.
     "I believe also with the new hurricane, that everyone will be keen to
help the market," he said, referring to Tropical Storm Rita approaching the US
Gulf of Mexico. "Kuwait, for example, will do everything to help the market,
whatever the resolution we make," he said.
     At the end of the first day of talks Monday there was no clear consensus
on the likely outcome of the meeting, but Sheikh Ahmed said he believed
ministers would back the proposed 2-mil b/d supply offer rather than a
proposal to raise the group's official 28-mil b/d output ceiling.
     Early Tuesday, however, he said the proposal to raise the ceiling by
500,000 b/d and give the president discretionary power to call for a further
increment of 500,000 b/d had not been discarded. "Yes, yes, yes," he said,
when asked if the quota increase proposal was still on the table.

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