U.S. to decide in June whether to ask OPEC for more oil Filed: 05/18/2000

Washington, May 18 (Bloomberg)  U.S. Energy Secretary Bill Richardson said the U.S. will decide in mid-June whether it wants OPEC to increase oil production, though he wants OPEC countries to "keep an open mind" about raising their quotas.

Richardson last week urged the Organization of Petroleum Exporting Countries to consider raising oil output, as crude oil prices have risen during the past two months to about $30 a barrel in New York. OPEC members, though, have expressed satisfaction with current prices.

"The U.S. will decide whether it wants OPEC to increase production in mid-June, after reviewing market conditions," Richardson said.

U.S. gasoline prices have begun rising with the approach of the summer travel season, a time of peak fuel demand. The average U.S. price for regular self-serve gasoline is about $1.50 a gallon, a few cents lower than the record high reached in March but about 35 cents above where it was a year ago.

OPEC, which supplies 40 percent of crude oil worldwide, has said it will boost output by 500,000 barrels a day if the price goes above its upper limit of $28 a barrel for 20 days and reduce it by the same amount if the price goes below its lower limit of $22. The average price for the past 20 days is $25.26 a barrel.

OPEC plans to meet June 21 in Vienna to consider whether its oil output quotas need to be adjusted. Producing nations Saudi Arabia, Venezuela and non-OPEC Mexico said last week that they were satisfied with current oil prices.

Richardson told reporters he met with Mexican Oil Minister Luis Tellez for an hour in Washington today but did not ask Tellez to increase oil production.

Energy ministers from Australia, Japan and Korea, all oil-consuming nations, have said they agree with Richardson that more oil may be needed.

Production Boost

In March, oil-producing countries agreed to boost oil supplies after a year of coordinated output cuts caused prices to reach nine-year highs.

Richardson said the U.S. is concerned about the recent surge in oil prices and wants to see stability.

"The OPEC decision in March was a good decision, but we just want to make sure there is enough oil on the market internationally for everyone," he said.

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-- Martin Thompson (mthom1927@aol.com), May 18, 2000