Oil shoots up to 34-month high

Tellez, Saudi Arabia’s Ali al-Naimi and Venezuela’s Ali Rodriguez were meeting in the Saudi capital Riyadh to talk about market conditions. The three countries were the architects of a pact to cut more than five million barrels per day from world supply, which rescued the market from its worst crisis in decades. Tellez and Rodriguez said earlier it was too early to decide if the cuts, due to last untilthe end of March, should be extended.

They said the producers would wait until March to determine whether to extend or lift the cuts. "We have to take a serious and careful look at stock piles in March. Only then can we decide what to do," Rodriguez said.On Monday, Kuwait oil Minister Sheikh Saud Nasser al-Sabah said OPEC’s oil ministers had agreed to extend the cuts beyond March. "The principle now is accepted by all. What remains now is to decide on the duration," he said.

On Saturday, Qatar oil minister and OPEC president Abdullahal-Attiyah said it would be realistic if the cuts were extended until the end of the year 2000. On Wednesday, Rodriguez said he was unconcerned that oil stocks could fall too low before March 2000. London-based Centre for Global Energy Studies said earlier this week oil stocks were so tight that commercial stock cover held by oil companies could hit minimum operating levels by early next year.

American Petroleum Institute data late on Tuesday reiterated the trend. Itreported crude stocks in the United States dropped 2.5 million barrels to 309 million barrels in the week ended November 12, almost 31 million barrels below stock levels a year earlier.