OPEC to Raise Supply in Face of US Attack against Iraq

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Last updated at: (Beijing Time) Saturday, March 01, 2003

OPEC to Raise Supply in Face of US Attack against Iraq

The Organization of Petroleum Exporting Countries (OPEC) said on Friday it will raise its supplyin the face of a fuel shortage that could occur during a possible United States attack on Iraq.

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The Organization of Petroleum Exporting Countries (OPEC) said on Friday it will raise its supplyin the face of a fuel shortage that could occur during a possible United States attack on Iraq.

OPEC Secretary General Alvaro Silva said the organization is prepared to relieve the situation when needed and could attend to some additional demand.

In a telephone interview released Friday by Venezuela's state-run Venpress news agency, Silva forecast a drop in the price of oil by the second quarter of the year, when "there is less demand for fuel".

Silva gave an assurance that no forecasts could be made over the pricing of crude, and price increase would not be a consequence of supply, but of nervousness and speculation.

The secretary general said if the flow of extraction is suspended by a possible United States attack on Iraq, the cartel has the capacity to increase supply.

OPEC produces 24.5 million barrels a day. Silva guaranteed there was enough fuel at the market, so it was not necessary to increase production at the next ordinary conference.

At the last Dec. meeting, OPEC decided an increase in supply by1.3 million barrels per day and at its extraordinary meeting, an increase of 1.5 million barrels a day was decided for February.

Silva promised to guarantee the stability of prices. OPEC's price band is set at 28 dollars per barrel maximum and 22 dollars minimum.

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