OPEC Worry On Weak Dlr May Be In Summit Communique -Sources

Concern by some members of OPEC over the impact of the weak dollar could find its way into the final communique to be issued by the oil producer group's leaders Sunday, sources said Friday, though only if there is consensus.
Dow Jones Newswires
Παρ, 16 Νοεμβρίου 2007 - 03:07
Concern by some members of OPEC over the impact of the weak dollar could find its way into the final communique to be issued by the oil producer group's leaders Sunday, sources said Friday, though only if there is consensus.

The communique, originally drafted about a month ago during a low-key meeting for OPEC delegates in Riyadh, currently has three main points of focus; protecting the environment; sustainability; and the security of energy supplies.

Leaders of OPEC are to meet in the Saudi Arabian capital Riyadh Saturday and Sunday to discuss the challenges a potential global recession, an anemic dollar, and rising environmental concerns present to their near-$1.8 billion a day in revenue.

They include Venezuela's President Hugo Chavez, King Abdullah of Saudi Arabia, and Iran's firebrand President Mahmoud Ahmadinejad.

A decision this week on altering oil output by the group has been ruled out, as oil officials will meet Dec. 5 to discuss the consequences of near-$100-a-barrel oil and the prospect of weaker demand.

However, in a closed session later Friday featuring the ministers of finance, foreign affairs, and oil, some members are to propose a fourth focus on the dollar and its impact on oil prices.

"There is a meeting for the group's foreign ministers, along with oil and finance ministers in the afternoon, and they will discuss the communiqué before they agree on its final content," an OPEC official familiar with the proposals told Dow Jones Newswires.

"The main change could be seeing a note about the weak dollar, and concern by member countries on how it is affecting their economies and eating into their revenues," the official added.

It doesn't mention the weak dollar or its effect on the group of oil exporters' revenues, the official added.

Some OPEC members have voiced concern about the dollar, in which their prime export product is priced, and are to call for studies to be conducted into the effects.

"We would love to see a study about the effect that the weak dollar is having on our revenues, and suggestions to cap this effect. I am sure it will be discussed," a senior OPEC delegate added.

Proposals by both Venezuela and Iran to trade with oil in a basket of currencies in order to replace the historical link to the dollar have been put forward, but such calls haven't found enough support from some in OPEC.

The group's Secretary General Abdalla Salem el-Badri said earlier this week that the group wasn't discussing changing the pricing of crude oil from dollars into other currencies - a proposal reiterated by Venezuela's Oil Minister Rafael Ramirez.

"The OPEC Secretariat isn't working on this issue, because it's up to member countries to decide for themselves," el-Badri said.

"Basically, if there is no consensus on mentioning the issue, it will not be seen in the final communique," the delegate said.

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