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OPEC pledges to fill war shortage
VIENNA, Austria (CNN) -- The Organization of the Petroleum Exporting Countries will not let a war in Iraq disrupt the world's oil supply, a spokesman for the group said on Thursday. "This is to reaffirm that OPEC will compensate any shortfall that may occur as a result of the U.S. attack on Iraq," said media relations officer Addulrahman Al-Kheraigi. In a statement carried on OPEC's official news agency, OPEC President Abdullah al-Attiyah said he had spoken with members of the 11-strong cartel following the start of the U.S. attack on Iraq. "As a result of those consultations, I am herewith reiterating OPEC's resolve to make up for any supply shortfall resulting from developing events," he said. "To this end, member countries have pledged to use, in the interim, their available excess capacities to ensure continued supply." OPEC members collectively produce about 40 percent of the world's oil supply and own three-quarters of the world's proven crude reserves. The International Energy Agency said it was closely monitoring events to see if it would be necessary to release emergency stocks. Brent crude for May delivery fell 40 cents to $26.35 a barrel in early London trading on Thursday. In Asia, oil prices tumbled more than $1 to three-month lows after the attack on oil exporter Iraq began, with dealers betting on a swift coalition victory that causes little disruption to Middle East crude flows. U.S. light crude fell $1.83 to $28.05 a barrel in Asia trade. "Prices have come down because the (timing) uncertainty is gone. The start of the war just means the end of the war is closer," David Thurtell, commodities strategist at Commonwealth Bank in Sydney, told Reuters. "Prices always overshoot when you have a big move, so you can easily see oil come down to $26, $27 a barrel before buying pressure comes back in."
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