KUWAITI DAILY SAYS OPEC CREDIBILITY AT STAKE
OPEC's credibility faces fresh scrutiny
in coming weeks amid signs of a significant rise in supplies of
oil to international oil markets, the Kuwait daily al-Qabas
said.
    In an article headlined "Gulf oil sources say Middle East
production up 1.4 mln bpd" and "Markets witness new surplus amid
whispers of return to cheating days," it warned OPEC's official
prices could face fresh pressure from international oil
companies seeking cheaper supplies.
    It did not say whether only OPEC or Opec and other
producers were behind the reported rise in Mideast output. Nor
did it specify if the sources were official or other contacts.
   "The sources said the credibility of OPEC would come under
fresh scrutiny from Monday, with activity in the European and
American markets," it said.
    The sources were quoted as saying that after Opec had in
March demonstrated its commitment to quota agreements, some
members had raised output last week. It gave no details.
    "Dealers in oil markets were now waiting to see if Opec was
able to control production, or whether the days of cheating and
producing over quotas has begun anew," it reported.
   "The sources warned that maybe the (price of a) barrel of oil
will fall below 18, perhaps 17.80 dlrs this week or next if
there is no control on supplies.
    "The sources believed a return of oil below 18 dlrs a barrel
may open the doors for international oil companies to pressure
Opec over contract prices, similar to the struggle last March,"
it said, apparently referring to resistance by buyers to lift
from Qatar unless it gave price discounts.
    "More than one official has warned Opec would find its
solidarity under scrutiny by the end of April or start of May,"
it said, noting demand usually fell with the onset of summer.

 Reuter
