SAUDIS NOT SEEKING OIL PRICE ABOVE 18 DLRS - MEES
Saudi Arabia will not seek to push OPEC
oil prices above the current benchmark of 18 dlrs per barrel
unless oil demand grows strongly, the Middle East Economic
Survey (MEES) said.
    The Cyprus-based weekly newsletter quoted authoritative
Saudi sources as saying the Kingdom's oil price policy would
not change "unless and until there is a strong revival in the
growth of demand for oil."
    MEES said this contradicted recent hints of new Saudi price
hawkishness from U.S. Congressional and oil industry sources.
    The Saudi sources said their policy was firmly based on the
long-term need to restore the competitive position of oil in
general and OPEC oil in particular against other energy
sources.
    "Saudi Arabia is certainly committed to cooperating with its
OPEC partners to exercise the necessary production restraint to
maintain the 18 dlr per barrel reference price level," MEES
said.
    The newsletter said Saudi output in the first three weeks
of April averaged slightly above its OPEC quota of 4.133 mln
barrels per day (bpd). Output would fall in the last week,
causing the month's average to be below quota, MEES said.
    MEES estimated overall OPEC production for April at around
16.8-16.9 mln bpd -- two mln bpd more than both its figures for
March and Reuter estimates for March.
    It said Iranian production had risen by 500,000 bpd this
month to 2.2-2.3 mln bpd, around its quota level. In Iraq, with
an OPEC-assigned quota of 1.466 mln bpd, output rose this month
to two mln bpd, not including "war relief" supplies from Kuwait
and Saudi Arabia, the newsletter said.
    Nigeria, which has had problems selling its full 1.238 mln
bpd entitlement, increased its output to 1.2 mln bpd, it added.
 REUTER
