ENERGY MINISTER: NO OPEC PRODUCTION CUTS NEEDED

UNCLAS KUWAIT 000308

SIPDIS

SIPDIS

LONDON FOR TSOU
DEPARTMENT OF ENERGY FOR IE
EB/ESC/IEC FOR GALLOGLY, DOWDY

E.O. 12958: N/A
TAGS: ENRG EPET KU OPEC OIL SECTOR
SUBJECT: ENERGY MINISTER: NO OPEC PRODUCTION CUTS NEEDED


1. On the January 29 departure of Kuwait's OPEC delegation
to Vienna, immediate past OPEC President and Kuwait Energy
Minister Shaykh Ahmad Fahd Al-Ahmad Al-Sabah called on OPEC
to not cut production at the Vienna meeting. "There is a
large surplus of crude oil in the markets," he said, "but
because of (high) prices, I think OPEC should do as it always
did - support prices, markets and supplies." He added, "I
hope that the status quo would be maintained and that OPEC
would work to stabilize prices."


2. Comment: Shaykh Ahmad is not attending the OPEC meeting
in Vienna. He stayed in Kuwait on January 29 to witness the
swearing in of new Amir Shaykh Sabah Al-Ahmad Al-Sabah, and
will need to remain in Kuwait over the next week as a new
Cabinet is named. Shaykh Ahmad's Office Director confirmed
to Econ Officer on January 30 that the Minister had made
these comments to reporters at the airport prior to the OPEC
delegation's departure and that the delegation would carry
this message to the meeting in Vienna. Kuwait's OPEC
delegation is headed by OPEC Governor for Kuwait Ms. Seham
Razzouqi. End Comment.

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Visit Embassy Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
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LeBaron