The Ministry of Petroleum and Mineral Resources today issued the following press release:
As a result of lower oil demand and higher production, oil prices have deteriorated in the last three months. The continuing of this situation is very harmful to both oil producers and consumers. The international oil market needs to be balanced and stable.
In the spirit of cooperation among oil producers (non-OPEC as well as OPEC) meetings were held in Riyadh on March 21 and 22, 1998. Attending these meetings were the oil ministers of Mexico, Venezuela, and Saudi Arabia. They recognized that there is an immediate need to reduce oil supply by an amount of 1.6 to 2.0 million barrels per day. This reduction of supply should start from April 1, 1998 and continue until the end of the year.
Saudi Arabia has therefore decided to reduce its oil supply by 300,000 barrels a day from its current level. In the light of ongoing consultation with other producers, Saudi Arabia expects all producers within OPEC, and all major oil exporters outside OPEC, to reduce their supply from their current levels, in order to reach the desired goal.