Wednesday, September 10, 2008
Key to the cartel: Opec's leading figures
September 6 2008 - The Guardian by Kathryn Hopkins - Opec, the producers' cartel, includes 13 nations, but there are essentially 
three leading figures who dictate the direction of oil prices: Ali al-Naimi Minister of petroleum and mineral resources in Saudi Arabia A former shepherd, this modest man also keeps his comments in front of the media short, earning himself the sobriquet The Silent Saudi. He is aware that any slip of the tongue could add or subtract billions of dollars in investments on the oil markets. But behind the scenes, the Saudi technocrat is expansive, keen to use his enormous knowledge and expertise to guide members of Opec or other groups to sensible and relatively conservative solutions. Saudi Arabia might have the strength of being the biggest oil producer, but it takes skills to negotiate a position that will help the west when dealing with Opec members that include
Venezuela and Iran. He has often supported an increase in oil supply to placate important friends in the west. Saudi Arabia is currently pumping flat out, adding 200,000 barrels of oil a day in June with a view to increasing capacity to 12.5m a day by the end of next year. Hugo Navarro, a specialist on international oil markets at consultants Capital Economics, said: "Opec's most powerful member, Saudi Arabia, is sensitive to western public opinion and will not want to be seen putting renewed upward pressure on oil prices at a time when global economic growth is slowing." Gholam Hossein Nozari Iran's minister of petroleum Iran is the most hawkish member of Opec. It 
often calls for production cuts when other countries are more reluctant. Nozari recently said pumping more oil would do nothing to stop the surge in prices, after Saudi Arabia revealed that it may be increasing its production again. "Increased oil production does not have such an impact that it would decrease prices, because enough oil exists in the global market," he said. "Just compare 300,000 barrels per day with about 86m, which the markets need. What would be the effect?" Rafael Ramirez Venezuela's oil minister Venezuela is another hawkish member that often demands cuts in production to boost the price. Ramirez believes that Opec does not need to increase its supply. "We don't see a need to increase oil production ... The market is well supplied," he said.
three leading figures who dictate the direction of oil prices: Ali al-Naimi Minister of petroleum and mineral resources in Saudi Arabia A former shepherd, this modest man also keeps his comments in front of the media short, earning himself the sobriquet The Silent Saudi. He is aware that any slip of the tongue could add or subtract billions of dollars in investments on the oil markets. But behind the scenes, the Saudi technocrat is expansive, keen to use his enormous knowledge and expertise to guide members of Opec or other groups to sensible and relatively conservative solutions. Saudi Arabia might have the strength of being the biggest oil producer, but it takes skills to negotiate a position that will help the west when dealing with Opec members that include Venezuela and Iran. He has often supported an increase in oil supply to placate important friends in the west. Saudi Arabia is currently pumping flat out, adding 200,000 barrels of oil a day in June with a view to increasing capacity to 12.5m a day by the end of next year. Hugo Navarro, a specialist on international oil markets at consultants Capital Economics, said: "Opec's most powerful member, Saudi Arabia, is sensitive to western public opinion and will not want to be seen putting renewed upward pressure on oil prices at a time when global economic growth is slowing." Gholam Hossein Nozari Iran's minister of petroleum Iran is the most hawkish member of Opec. It often calls for production cuts when other countries are more reluctant. Nozari recently said pumping more oil would do nothing to stop the surge in prices, after Saudi Arabia revealed that it may be increasing its production again. "Increased oil production does not have such an impact that it would decrease prices, because enough oil exists in the global market," he said. "Just compare 300,000 barrels per day with about 86m, which the markets need. What would be the effect?" Rafael Ramirez Venezuela's oil minister Venezuela is another hawkish member that often demands cuts in production to boost the price. Ramirez believes that Opec does not need to increase its supply. "We don't see a need to increase oil production ... The market is well supplied," he said.
# posted by Deval : 2:13 PM
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