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.)

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