![](media/image1.jpeg){width="8.75in" height="3.6055555555555556in"}U.S.
DEPARTMENT OF ENERGY

**Office of Energy Assurance**

**ENERGY ASSURANCE DAILY**

###### May 21, 2004

**Highlights / Major Developments**

**Saudi Arabia to propose OPEC ceiling hike of at least 2-mil b/d**

Saudi Arabia will propose an increase of more than 2-mil b/d in OPEC\'s
crude

production ceiling and has already allocated exports of around 9-mil b/d
to

customers as of June, Saudi oil minister Ali Naimi said in a statement
Friday.

The statement said Naimi \"emphasized that out of the concern for market

stability, supply continuity and the growth of the world economy,
especially

of our fellow developing countries who stand to be more adversely
affected by

the sudden and excessive oil price increase, Saudi Arabia will propose
an

increase in OPEC production ceiling by more than 2-mil b/d and has
already

allocated to its customers around 9-mil b/d as of June 2004.\" Naimi\'s

statement said recent revisions in oil demand and supply projections for
the

coming month pointed to an increase in required production from OPEC of
more

than 2-mil b/d. Naimi\'s proposal is an upward revision of the 1.5-mil
b/d

quota hike he called for last week. An OPEC delegate said the cartel
would

defer a final decision on output policy until a June 3 conference in
Beirut. <http://www.platts.com/Oil/News/3127479.xml?S=n>

**Electricity**

####### 

####### Petroleum

#### 

#### Natural Gas 

**US congressman introduces bill to speed up review of LNG projects**

Washington (Platts)\--20May2004

Unwilling to \"sit by idly while the energy bill gathers dust in the
Senate,\"

US Rep. Lee Terry, Republican-Nebraska, on Thursday introduced
legislation

aimed at encouraging the development of liquefied natural gas
facilities.

According to a statement, the bill would expedite the federal
government\'s

review of applications to build onshore LNG terminals and provide LNG

companies regulatory certainty. The bill is co-sponsored by Reps. Gene
Green,

Democrat-Texas; John Sullivan, Republican-Oklahoma and Devin Nunes,

Republican-California. \"While we must increase domestic production,
expanding

LNG supplies is also necessary if we want to stabilize natural gas
prices,\"

said Terry. \"The technology is available to bring more LNG here in a
safe and

secure way. Through this pro-jobs, pro-growth bill, we can help provide

another option to diversify our energy portfolio.\"

Interstate Natural Gas Assn. of America President Don Santa Jr.
applauded the

move, saying that while INGAA remains \"supportive\" of the
comprehensive bill,

it \"recognizes the need to focus on the newly emerging challenges to

constructing new LNG terminal capacity.\" Santa noted that the proposal
deals

\"comprehensively with the approval, siting, permitting and regulation
of LNG

terminals.\" The legislative initiative \"does not diminish\" the need
to develop

new supply in North America in places like the Rocky Mountains, Canada,
Alaska

and the deepwater US Gulf of Mexico, he added. \"Jurisdictional
conflicts and a

decentralized permitting process are frustrating the development of new
LNG

infrastructure,\" said Santa. Congress \"must examine the need for an
enhanced

statutory framework that permits these facilities, if found to be in the

public interests, to be sited on a timely basis, because delay and
gridlock

will only result in higher natural gas prices for all American
consumers.\"
[http://www.platts.com/Natural%20Gas/News/7646366.xml?S=n](http://www.platts.com/Natural Gas/News/7646366.xml?S=n)

####### Other

**Energy Prices**

+-------------------------------+-----------+-----------+------------+
|                               | **Latest  | **Week    | **Year     |
|                               | (5        | Ago**     | Ago**      |
|                               | /21/04)** |           |            |
+-------------------------------+-----------+-----------+------------+
| **CRUDE OIL**                 |           |           |            |
|                               |           |           |            |
| **West Texas Intermediate     |           |           |            |
| US**                          |           |           |            |
|                               |           |           |            |
| \$/Barrel                     |           |           |            |
+-------------------------------+-----------+-----------+------------+
| **NATURAL GAS**               |           |           |            |
|                               |           |           |            |
| **Henry Hub**                 |           |           |            |
|                               |           |           |            |
| \$/Million Btu                |           |           |            |
+-------------------------------+-----------+-----------+------------+

> Source: Reuters

**This Week in Petroleum** from the Energy Information Administration
(EIA)

[*http://tonto.eia.doe.gov/oog/info/twip/twip.asp*](http://tonto.eia.doe.gov/oog/info/twip/twip.asp)

Updated on Wednesdays

**Weekly Petroleum Status Report** from EIA**\
**[*http://www.eia.doe.gov/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/wpsr.html*](http://www.eia.doe.gov/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/wpsr.html)

Updated after 1:00pm (Eastern time) on Wednesdays

**Natural Gas Weekly Update** from EIA

[*http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp*](http://tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp)

Updated after 2:00 pm (Eastern time) on Thursdays

# Reuters, May 21, 2004

WTI \$39.90

HH \$6.35

16:23 20May2004 Four US states to sue over coal-fired power plants

16:24 20May2004 Four US states to sue over coal-fired power plants

By Steve James

NEW YORK, May 20 (Reuters) - Four eastern states said on Thursday they
will sue Allegheny Energy \<AYE.N\>, alleging the company\'s five
coal-fired power plants in West Virginia violate the federal Clean Air
Act.

\"While the owner of these power plants has reaped profits, New Jersey
residents have reaped a bitter harvest of smog, acid rain and
respiratory ailments,\" New Jersey Gov. James McGreevey said in a
statement.

New York Attorney General Eliot Spitzer said his state had joined with
New Jersey, Connecticut and Pennsylvania to send Allegheny Energy a
letter saying they intend to sue. The letter identifies Clean Air Act
violations at five power plants in West Virginia owned by the company.

Allegheny Energy, which is based in Greensburg, Pennsylvania, said it
was reviewing the letter, but had no immediate comment.

According to Spitzer, the suit comes after the federal government
dropped its investigation of the power plants last year and he accused
the Bush Administration of not enforcing clean air regulations.

He said the dropped investigation by the Environmental Protection Agency
(EPA) had revealed that coal plants owned and operated by Allegheny made
major improvements without installing legally required air pollution
controls.

\"As a result, they have continued to emit hundreds of thousands of tons
more pollution each year,\" Spitzer said.

In addition, his letter identifies unpermitted modifications at three
power plants in Pennsylvania, but the states have deferred joint action
on those power plants since Pennsylvania has initiated its own
investigation and is in discussions with Allegheny regarding those
violations.

\"Faced with federal regulators at the EPA who have abdicated their
responsibility to enforce the Clean Air Act, we will join with three
other states to ensure that corporate polluters are not permitted to
defy the law at the expense of our environment and the health of our
citizens,\" said New Jersey Attorney General Peter Harvey.

New York\'s Spitzer, who has earned a reputation for pursuing corporate
malfeasance, said sulfur dioxide (SO2) and nitrogen oxide (NOx)
emissions from the coal-fired plants cause smog, acid rain, respiratory
disease and other harm.

After the federal government announced that EPA was dropping some 50 air
pollution enforcement investigations, Spitzer obtained comprehensive
files on these power plants.

\"Air pollution from coal-fired power plants is a serious threat to New
York\'s environment and public health,\" he said. \"It is disturbing
that the federal government is no longer enforcing the Clean Air Act,
and is in fact taking steps to sharply weaken it. New York and its
partners will act if the federal government is unwilling to do so.\"

((Reporting by Steve James; editing by Caroline Valetkevitch;Reuters
Messaging steve.james.reuters.com@reuters.net; 646-223-6000))

. Thursday, 20 May 2004 16:23:25

RTRS \[nN20438387\] {C}

ENDS

12:30 21May2004 RTRS-NEW YORK-W HOUSE\'S MANKIW SAYS OIL PRICES HEADWIND
FOR GROWTH BUT NOT BIG THREAT

12:30 21May2004 RTRS-W HOUSE\'S MANKIW- OIL PRICES WELL BELOW RECORD
HIGHS WHEN ADJUSTED FOR INFLATION

12:30 21May2004 RTRS-W HOUSE\'S MANKIW SAYS MOST SIGNS ARE ECONOMY TO
EXPAND \"VIGOROUSLY\" IN 2004

12:31 21May2004 RTRS-W.House\'s Mankiw\--oil prices won\'t derail
recovery

NEW YORK, May 21 (Reuters) - The recent surge in oil prices will slow
the U.S. economy a bit, but it is not a major threat to the recovery, a
top White House economic adviser said on Friday.

\"Higher oil prices may now be a headwind for the U.S. economy, but
standard models indicate that they do not pose a significant threat to
the recovery,\" said Council of Economic Advisers Chairman Gregory
Mankiw.

He cited a recent study by the International Energy Agency that said a
sustained \$10 per barrel increase in oil prices would cut U.S. gross
domestic product by just 0.3 percent this year and next.

\"An important point to bear in mind is that today\'s supposedly
\'record high\' gasoline prices of \$2 per gallon are well below the
prices seen in the earlier 1980s when these earlier prices are adjusted
for overall inflation,\" Mankiw said in prepared remarks to the CNBC
Financial Summit.

Measured in 2004 dollars, the price of oil reached a peak of \$91 a
barrel in the early 1980s. Crude oil prices have soared above \$40 a
barrel recently on nervousness about Middle East production, surging
economic growth in China and strong demand for U.S. gasoline.

((Reporting by Victoria Thieberger; editing by Dan Grebler; Reuters
Messaging: victoria.thieberger.reuters.com@reuters.net; e-mail:
victoria.thieberger@reuters.com; Tel: 646-223-6300))

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Friday, 21 May 2004 12:30:00

RTRS \[nNAT000530\] {EN}

ENDS

12:54 20May2004 UPDATE 2-Oil spike due to factors beyond OPEC scope

(adds price band quotes paras 17-20)

By Toby Reynolds

LONDON, May 20 (Reuters) - OPEC oil producers are committed to supplying
more crude to world markets but the current spike in prices is due to
factors beyond the group\'s control, the cartel\'s president said on
Thursday.

\"While oil market still holds above \$40 a barrel\...that is due to
factors beyond OPEC\'s scope,\" Purnomo Yusgiantoro told reporters in
London. \"It is not an upstream problem.\"

He said speculation and lack of refining capacity were contributing to
the rise in oil prices, which earlier this week spiked to 21-year highs
on the New York Mercantile Exchange at almost \$42 a barrel.

\"The high oil price is because of the gasoline market, the downstream,
the products market, speculators and the geo-politics,\" said Purnomo,
who is also the Indonesian oil minister.

He added that OPEC was committed to keeping the market well supplied
with crude.

Of a Saudi proposal to hike the official output ceiling by 1.5 million
barrels per day (bpd), Purnomo earlier told Reuters: \"At least it gives
the signal to the market that we are committed to supply more oil to the
market.\"

The rise in oil prices has led to fears of a derailment in world
economic growth and sparked calls for OPEC to supply more crude to cool
prices.

Purnomo said OPEC was already pumping more than two million bpd over its
official output ceiling of 23.5 million bpd for the 10 members with
quotas.

Oil traders have also questioned how much crude the Saudi move would
actually add to the market.

\"In the case of (hiking the output ceiling by) 1.5 million bpd so that
we produce 25 million bpd, we already produce that much,\" the OPEC
president added.

OPEC ministers meet informally this week, probably on Saturday, ahead of
a producer-consumer forum in Amsterdam. They will hold a full
ministerial meeting in Beirut on June 3.

Of the cartel\'s members, only Venezuela has explicitly opposed any
possible output hike while Algeria and Qatar have expressed doubts the
cartel can succeed in bringing down prices.

\"We would like all parties to cooperate together, to work hand in hand
to stabilise oil prices,\" Purnomo said, referring to non-OPEC
producers, the downstream sector and speculative investors.

PRICE BAND

Another issue likely to be discussed at upcoming OPEC meetings is the
group\'s price band. The current target price range of \$22-\$28 a
barrel was introduced in 2000 but the price has been above this range
all this year.

Several OPEC members have called for a revision of this price band,
saying it has been eroded by inflation and the depreciation of the U.S.
dollar, the currency of oil trade.

Purnomo said the cartel still for now favoured the current range,
adding: \"We want oil prices to be in the range of \$22-\$28 a barrel,
the same as usual. The \$25 (preferred) price is still valid.\"

Purnomo has previously said that the band needs to be reviewed.

On Thursday he told CNBC he would defer to OPEC\'s secretariat on the
determination of any new price band levels, but that he thought a new
bracket should have a top between \$30 and \$34 per barrel, with a lower
limit between \$22-\$24.

\"My feeling is that the proper band probably is around \$30-\$32-\$34
at the max, for the upper limits. For the lower limit, probably
\$22-\$24.\"

Leading member Saudi Arabia has said repeatedly it does not want to
alter the target from \$22-\$28.

((Reporting by Toby Reynolds; editing by James Jukwey; Reuters
messaging: toby. reynolds.reuters.com@reuters.net, +44 20 7 542 7646))

Thursday, 20 May 2004 12:54:57

RTRS \[nL20146205\] {C}

ENDS

14:21 21May2004 RTRS-U.S. stocks rise, oil\'s retreat eases worries

(Updates to early afternoon, changes byline)

By Vivian Chu

NEW YORK, May 21 (Reuters) - Stocks edged up on Friday, as Saudi
Arabia\'s call for higher oil production quotas drove oil prices below
\$40 a barrel and reassured investors who worried that soaring oil
prices could derail the recovering U.S. economy.

Alcoa Inc. \<AA.N\> led the blue-chip Dow\'s percentage gainers after
the aluminum producer said it cut jobs at a Mexican affiliate.

But energy shares fell, tracking the decline in oil prices, with the
Standard & Poor\'s Integrated Oil and Gas Index \<.GSPOILI\> off 0.3
percent.

\"The big factor today is that oil is below \$40, which is a huge plus
for the market. I think all the bad news over the past few weeks is
finally being absorbed into the market,\" said Victor Pugliese, managing
director at First Albany Corp.

However, \"volume is real low, and it\'s a very quiet day, even compared
with low volume we had recently,\" Pugliese added.

The Dow Jones industrial average \<.DJI\> rose 43 points, or 0.43
percent, to 9,981. The Standard & Poor\'s 500 Index \<.SPX\> added 4
points, or 0.40 percent, to 1,094. The technology-laced Nasdaq Composite
Index \<.IXIC\> gained 8 points, or 0.43 percent, to 1,905.

In New York, crude oil futures fell more than \$1 at midday after the
Organization of Petroleum Exporting Countries heavyweight Saudi Arabia
proposed the cartel raise its oil output by more than 2 million barrels
per day. OPEC oil ministers have an informal meeting scheduled this
weekend.

On the New York Mercantile Exchange, crude oil for July delivery traded
at \$39.90 a barrel, after hitting \$41.85 on Monday, the highest price
since the exchange launched the oil futures contract 21 years ago.

Alcoa shares added 1.2 percent, or 34 cents, to \$29.64. Earlier, the
world\'s No. 1 aluminum producer said would cut almost 10 percent of the
work force at its Mexican automotive affiliate because of reduced
production.

Nordstrom Inc. \<JWN.N\> shares surged, a day after the upscale
department store chain said its quarterly profit soared 153 percent,
buoyed by strong sales as the retailer made better use of technology to
help track inventory and trends. Shares of Nordstrom rose \$2.23, or 6
percent, to \$39.46 and were among the biggest percentage gainers on the
New York Stock Exchange.

Among declining issues, Marvel Enterprises Inc. \<MVL.N\> shares
slumped, a day after the comic book publisher said two of its top
executives sold a portion of their stake in the company. Shares of
Marvel fell 84 cents, or 4 percent, to \$19.46 on the NYSE and were
among the exchange\'s top percentage losers.

But Martha Stewart Living Omnimedia Inc. \<MSO.N\> shares jumped 9
percent, or 82 cents, to \$9.37, after rising as much as 20 percent, on
media reports that a perjury charge was filed against a U.S. Secret
Service employee involved in the stock manipulation case against the
company\'s namesake founder.

Options expirations could influence stock trading, traders said.
Typically, options expiration is orderly, but some volatility may occur
as players unwind May options positions and roll them into June and
future months to manage their equity exposure.

((Reporting by Vivian Chu

Editing by Jan Paschal

Reuters Messaging

rm: //vivian.chu.reuters.com@reuters.net;

Telephone: 646-223-6026))

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Friday, 21 May 2004 14:21:19

RTRS \[nN21495494\] {EN}

ENDS

13:17 21May2004 RTRS-SAUDI OFFICIAL SAYS WILLING TO RAISE JUNE OIL
OUTPUT ABOVE 9 MLN BPD IF NEEDED

13:24 21May2004 RTRS-Saudi says willing to pump above 9 mln bpd if
needed

WASHINGTON, May 21 (Reuters) - Leading OPEC producer Saudi Arabia is
willing to pump more than 9 million barrels of oil per day in June if
its customers need the extra supply, Saudi Arabian foreign affairs
adviser Adel al-Jubeir said on Friday.

\"Our strategy is to increase it to 9 (million bpd) for June,\"
al-Jubeir told reporters on a conference call.

\"If we find that people want more than nine (million bpd) we will make
available more than nine. Nobody is going to be turned back if they want
Saudi crude.\"

((Reporting by Chris Baltimore; Reuters messaging:
chris.baltimore.reuters.com@reuters.net; 202 898 8316))

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\[ENR\] \[ENV\]

Friday, 21 May 2004 13:17:06

RTRS \[nWBT001030\] {EN}

ENDS

13:21 21May2004 RTRS-VENEZUELA OIL MIN SAYS WILL NOT SUPPORT SAUDI OPEC
PROPOSAL

13:21 21May2004 RTRS-VENEZUELA OIL MIN SAYS ENOUGH OIL IN MARKET, HIGH
PRICE NOTHING TO DO WITH SUPPL

13:22 21May2004 RTRS-VENEZUELA OIL MIN SAYS WANTS OPEC TO MAINTAIN
OUTPUT CEILING UNCHANGED

13:32 21May2004 RTRS-Venezuela\'s Ramirez will not support OPEC hike

AMSTERDAM, May 21 (Reuters) - Venezuela will not support a Saudi
proposal to lift OPEC output by over two million barrels per day, Oil
Minister Rafael Ramirez told reporters on Friday.

\"No,\" the minister said, \"Our proposal is to \... maintain the same
ceiling.\"

\"We believe that the price in the market has nothing to do with the
level of production, we have enough oil,\" the minister added. \"Other
politicial factors are pushing the prices up.\"

(OPEC newsroom +3120 504 5003)

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Friday, 21 May 2004 13:21:23

RTRS \[nAAT003276\] {EN}

ENDS

13:15 21May2004 RTRS-IEA CHIEF SAYS WELCOMES SAUDI OPEC OUTPUT HIKE
PROPOSAL

13:24 21May2004 RTRS-IEA\'s Mandil welcomes Saudi OPEC hike proposal

AMSTERDAM, May 21 (Reuters) - IEA Executive Director Claude Mandil on
Friday welcomed a Saudi proposal that OPEC raise output limits by at
least two million barrels a day.

\"I am pleased Naimi recognises the market has need of more oil,\"
Mandil told reporters in Amsterdam before a conference of oil producing
and consuming countries.

\"It is better for the economy and notably for undeveloped countries, it
is good that they recognise that.\"

He said the move, if approved, would result in about 700,000 bpd of real
extra production, because OPEC is already pumping in excess of official
quotas.

((Barbara Lewis, Amsterdam))

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Friday, 21 May 2004 13:15:20

RTRS \[nAAT003275\] {EN}

ENDS

13:09 21May2004 RTRS-U.S. summer gasoline supply seen tight, vulnerable

By Robert Gibbons

NEW YORK, May 21 (Reuters) - U.S. gasoline stations can keep drivers
motoring at the upcoming Memorial Day holiday, but distributors and
retailers say inventory tightness highlights supply chain
vulnerabilities, especially in California.

\"We\'re chronically at the supply/demand fulcrum point where anything
that causes supply interruption, like a refinery or pipeline problem,
jumps the market,\" said Jay McKeeman, executive vice president at the
California Independent Oil Marketers Association.

California has the toughest requirements for cleaner burning fuels,
limiting its ability to bring supplies even from other U.S. regions.

\"Supply is pretty tight all over the country and we don\'t see that
changing over the next few weeks,\" said Holly Tuminello, vice president
at the Petroleum Marketers Association of America (PMAA).

\"Demand is up where it normally is at the summer peak,\" she added.

U.S. gasoline demand in May is already the highest ever for this time of
year, according to the most recent data from the U.S. Energy Information
Administration, the statistical branch of the Department of Energy. At
the summer peak, demand is typically 6 percent higher than during the
rest of the year, according to the EIA.

NO DENT TO DEMAND

U.S. gasoline retail and futures prices on Friday were at or near record
levels with the traditional Memorial Day start to the U.S. summer
driving season due next weekend.

On Monday, the government said the average pump price spiked above \$2 a
gallon, jumping 7.6 cents over the last week, though still below the
inflation-adjusted record high of \$3 in 1981. Meanwhile, estimated
total U.S. gasoline inventories as of May 14 were 4.1 million barrels
below this time last year.

U.S. independent gasoline station owners have not reported any slowdown
in gasoline demand as the prices soared, \"not even anecdotally,\" said
Paul Fiore, executive vice president of the industry group the Service
Station Dealers of America.

Fiore agreed with the PMAA assessment that drivers should find the fuel
at the gasoline stations, if at high prices, though availability will be
at risk to any supply chain snags.

TROUBLE IN CALIFORNIA

\"California has had significant problems, a number of refineries going
on and off line coming back from spring maintenance,\" said McKeeman at
the CIOMA.

Prices in Los Angeles topped the EIA\'s city survey of gasoline costs,
up 5.4 cents to \$2.304 a gallon last week.

California\'s specifications for cleaner burning fuels limit imports
from other U.S. regions, like nearby Washington. In contrast, an outage
in Texas can easily be offset with supply from nearby Louisiana.

Components for blending can be brought to California from other states
and Asia, but refinery disruptions are not as easily offset in
California as in other states.

SWITCH FROM MTBE TO ETHANOL

Worries about supply as New York and neighboring Connecticut switched
from gasoline additive MTBE \-- which has been blamed for groundwater
contamination \-- to ethanol in January have so far been unfounded,
according to regional marketer groups.

\"That went relatively smoothly,\" said Gene Guilford, executive vice
president at the Independent Connecticut Petroleum Association. \"We saw
an immediate 12-14 cents per gallon price increase, but had anticipated
20-40 cents so we were on the low side.\"

Guilford said that as the switch to cleaner summer blends goes forward,
\"It appears, at least at this point, that there isn\'t a supply
issue.\"

\"We haven\'t had any reports of outages or shortages,\" said Tom
Peters, Executive Vice President at New York\'s Empire State Petroleum
Association.

((Reporting by Robert Gibbons; editing by Christian Wiessner;
robert.gibbons.reuters.com@reuters.net; email:
robert.gibbons@reuters.com; +1 646 223 6050))

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\[RTRS\]

Friday, 21 May 2004 13:09:50

RTRS \[nN21580500\] {EN}

ENDS

10:40 21May2004 RTRS-OPEC 10 OUTPUT SEEN UP 640,000 BPD IN MAY, 2.88
MBPD OVER QUOTAS-PETROLOGISTICS

10:43 21May2004 RTRS-OPEC 10 SEEN AT 26.38 MBPD IN MAY, SAUDI UP 375,000
BPD AT 8.6 MBPD-PETROLOGISTICS

10:44 21May2004 RTRS-TOTAL OPEC IN MAY SEEN UP 465,000 BPD AT 28.53
MBPD, IRAQ DOWN 170,000 BPD-PETROLOGISTICS

10:51 21May2004 RTRS-OPEC 10 estimated up 640,000 bpd in May-report

AMSTERDAM, May 21 (Reuters) - OPEC output is set to rise by 465,000
barrels a day this month to 28.53 million, tanker tracking consultancy
Petrologistics told its clients on Friday.

The Geneva-based consultancy said 10 OPEC members with quotas, excluding
Iraq, were estimated raising output by 640,000 bpd to 26.38 million bpd,
or 2.88 million above official output quota limits. Saudi was seen up
375,000 bpd at 8.6 million. Iraqi output is seen down 170,000 bpd.

((richard.mably@reuters.com; reuters messaging:
richard.mably.reuters.com@reuters.net; +44 207 542 6280))

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\[RTRS\]

Friday, 21 May 2004 10:40:10

RTRS \[nL21368835\] {EN}

ENDS

09:50 21May2004 RTRS-QATAR OIL MIN SAYS WILL SUPPORT OPEC OUTPUT HIKE IF
ALL OTHERS IN OPEC SUPPORT

09:57 21May2004 RTRS-Qatar will back Saudi OPEC proposal if others do

AMSTERDAM, May 21 (Reuters) - Qatar will back a Saudi proposal for OPEC
to raise its oil output if others within the cartel do so too, its Oil
Minister Abdullah al-Attiyah told reporters on Friday.

\"I will support it if all OPEC supports it,\" the minister said.

He added that OPEC\'s spare capacity for such a move was \"very small,\"
but declined to elaborate further.

(OPEC newsroom +3120 504 5003)

For Related News, Double Click on one of these codes:

\[O\] \[ESL\] \[MD\] \[DNP\] \[OIL\] \[MEAST\] \[OPEC\] \[CRU\] \[QA\]
\[LEN\] \[RTRS\] \[LATAM\]

Friday, 21 May 2004 09:50:33

RTRS \[nAAT003272\] {EN}

ENDS

07:58 21May2004 RTRS-LIBYA SAYS BACKS OPEC OUTPUT INCREASE IF NEEDED BY
MARKET

07:59 21May2004 RTRS-LIBYA SAYS CURRENT OIL PRICES NOT JUSTIFIED BY
MARKET FUNDAMENTALS

07:59 21May2004 RTRS-LIBYA SAYS FEW OPEC PRODUCERS HAVE SPARE CAPACITY
TO RAISE OUTPUT

08:01 21May2004 RTRS-LIBYA SAYS WOULD PREFER OPEC DECIDE ON OUTPUT
POLICY AT AMSTERDAM TALKS

08:07 21May2004 RTRS-Libya says backs OPEC output rise only if needed

AMSTERDAM, May 21 (Reuters) - Libyan Oil Minister Fethi bin Chetwane
told Reuters on Friday he would back a possible OPEC output hike, as
suggested by Saudi Arabia, only if it were needed by the market.

\"If an increase is needed for the market we will do it,\" he said. \"If
there is no need wee will have to discuss this.\"

\"We would like to do everything here if possible,\" he said ahead of an
energy producers/consumers conference in the Dutch capital.

He said high oil prices were largely the result of a lack of refining
capacity in the United Sates and there was little spare production
capacity left in OPEC.

(OPEC newsroom +3120 504 5003)

For Related News, Double Click on one of these codes:

\[O\] \[ESL\] \[MD\] \[DNP\] \[OIL\] \[MEAST\] \[OPEC\] \[CRU\] \[AFE\]
\[LATAM\] \[LY\] \[LEN\] \[RTRS\]

Friday, 21 May 2004 07:58:37

RTRS \[nAAT003271\] {EN}

ENDS