OPEC PRESIDENT EXPRESSES "CONCERN OVER HIGH OIL

UNCLAS KUWAIT 003870 SIPDIS SENSITIVE LONDON FOR TSOU DEPARTMENT OF ENERGY FOR IE, MWILLIAMSON EB/ESC/IEC FOR GALLOGLY, DOWDY E.O. 12958: N/A TAGS: ENRG EPET ECON KU OIL SECTOR SUBJECT: OPEC PRESIDENT EXPRESSES "CONCERN OVER HIGH OIL PRICES"; MIN ENERGY U/S TO VISIT U.S. REF: KUWAIT 3173 This cable is sensitive but unclassified; please protect accordingly. Not for Internet distribution. ¶1. (U) Kuwait's Minister of Energy and current OPEC President Shaykh Ahmad Fahd Al-Ahmad Al-Sabah said in a statement released August 28 that OPEC would "explore options to reduce prices" at the September OPEC meeting in Vienna. "We are becoming increasingly concerned at the continuing high level of oil prices, which does not properly reflect the underlying fundamentals of the market," he said. He continued, "oil resources and supplies are plentiful and OPEC has been producing more than the total OPEC quota by 1.5 million bpd in the third quarter of 2005." ¶2. (SBU) Ministry of Energy Undersecretary for Oil, Mr. Issa Al-Own, is planning to visit the U.S. and is planning on meeting with Department of Energy counterparts. He told Econ Officer that he is planning on leaving for London September 19, then arriving in Houston on September 24. He will be taking part in a conference in Houston for about ten days, and plans on arriving in Washington around October 7. He envisions being available for meetings in Washington Oct. 8-10. He would like to have these meetings to further the energy dialogue and cooperation between Kuwait and the U.S., and to discuss the "Strategic Studies Center" described in para 4-5 of reftel. Further details on this trip will be available when the Undersecretary returns from vacation on September 12. (Comment: U/S Al-Own is second-in-command to the Minister and is intimately familiar with all aspects of Kuwait's oil industry. He is an excellent contact for the Embassy on all energy issues and we encourage a good set of meetings at DoE and State (EB) for the Undersecretary during his visit. End Comment.) ********************************************* Visit Embassy Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ You can also access this site through the State Department''s Classified SIPRNET website ********************************************* LEBARON