Crude oil prices fall Saudi Arabia, Iran meet to tackle differences regarding output policy March 08, 2000: 10:36 a.m. ET

LONDON (CNNfn) - Crude oil prices fell Wednesday while Saudi Arabia and Iran met to discuss differences in output policy. The two oil leaders released a statement saying that producers should provide adequate and timely supplies to balance the market. Meanwhile, data released in the United States Tuesday showed an unexpected rise in crude and gasoline inventories. Brent crude futures on the International Petroleum Exchange for April delivery shed $1.29, or 4.2 percent, to stand at $30.61 in London after surging ahead $2.27, or 7 percent, on Tuesday. The American Petroleum Institute said crude stocks rose 7.6 million barrels to 291.7 million barrels in the week ended March 3. Gasoline stocks rose 4 million barrels to 199.7 million. Oil markets had expected stocks to fall. The Organization of Petroleum Exporting Countries (OPEC) cut more than 4 million barrels per day of production over the last year, leading to a drop in crude and oil stocks globally forcing prices to a nine-year high. Prices were last at this level when Iraq invaded Kuwait in November 1990. OPEC has come under pressure from the United States, the world's largest oil consumer, to increase supply before prices negatively impact on global economic growth. Saudi Arabia, the world's biggest oil producer, has hinted it is willing to raise supplies. Iran said OPEC should extend cuts because of seasonal declines in demand. OPEC, the oil producing organization that includes Mexico, Algeria and Libya, plans to meet on March 27 to decide on second-quarter production policy.

http://cnnfn.com/2000/03/08/worldbiz/oil/

-- Martin Thompson (mthom1927@aol.com), March 08, 2000