OPEC consulting on additional steps to calm post-storm oil market

London (Platts)--2Sep2005

OPEC is considering additional steps to help alleviate problems facing
world oil markets as a result of Hurricane Katrina's destructive passage
through the Gulf of Mexico and US Gulf Coast, the organization said Friday.
     Measures being considered by OPEC ministers would be in addition to
existing offers of extra crude supplies which have been made by OPEC members
with spare capacity, the cartel said in a statement.
     "OPEC is considering what other measures it can take to help ease the
severe problems caused by Hurricane Katrina, which had devastating
consequences for the southeast of the United States of America earlier this
week," the statement said.
     "Such measures would be in addition to the offers of extra crude supplies
to customers that have already been made by member countries with remaining,
sizeable spare capacity."
     OPEC President Sheikh Ahmed Fahed al-Sabah is also in touch with the US
and the IEA, "with a view to determining more precisely the nature of the
country's needs and any additional measures producers may be able to take."
     "OPEC will give all these matters further serious consideration at the
forthcoming Meeting of its Conference in Vienna, Austria, on 19 September
2005," the statement added.
     Most OPEC countries are already pumping at close to flat out, with only
its largest producer Saudi Arabia holding a significant amount of spare
capacity.
     Earlier this week Saudi Arabia offered to raise its crude production,
currently standing at around 9.5-mil b/d, to 11-mil b/d with immediate effect
to cover any shortage in the market.

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