OPEC countries split into two regarding the necessity of increasing oil production

/IRBIS, Feb.22, 00/ - ITAR-TASS informs that OPEC countries are split into two regarding the necessity of increasing oil production to lower the prices that rose up to $30 per barrel last week. It is said Iran and Kuwait were in favor of keeping the limits, with Venezuela against them. It is believed further developments would depend on the position of Saudi Arabia. Sources at London international oil exchange say Saudi Arabia is in favor of increasing the production, but the matter is how big the production should be. Some source say Er-Ryad will increase the production symbolically so that the prices will not go below $20 per barrel. It is expected general position of OPEC will be established during Wednesday meeting of oil ministers of these countries to be held in Er-Ryad. The West is still putting pressure on OPEC to lower the price. International energy agency /IEA/ informs that oil reserves in main western countries dropped to critical low levels. Executive director of IEA says current oil price may cause damages to both the consumers and the producers, and the major danger is the inflation that may be triggered due to oil shortages. A number of western specialists note continuous growth of the price from spring of last year is not affecting the inflation. It may be caused by the developments in scientific oriented industries and computer companies that determine general situation on the market and thus smooth out macroeconomic reactions on the oil price dynamics. Sources at London international oil exchange believe Washington is worried about possible negative effects of gasoline price hikes on the chances of electing democratic candidate as a new president in November of this year. Therefore, political interests of the USA, covered by "the worry" about the inflation, are the main reasons for a face-to-face attach of Washington on OPEC, said the source in London international oil exchange. It also reminded that when oil prices fell below $8 per barrel in 1998, which was dangerous for Persian gulf countries, USA did not urge anybody to raise the prices.