US embassy cable - 03ABUDHABI4361

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UAE'S REPRESENTATIVE TO OPEC "SURPRISED" BY DECISION TO CUT QUOTAS

Identifier: 03ABUDHABI4361
Wikileaks: View 03ABUDHABI4361 at Wikileaks.org
Origin: Embassy Abu Dhabi
Created: 2003-09-28 09:49:00
Classification: CONFIDENTIAL
Tags: EPET PGOV BEXP ENRG ECON EINV TC
Redacted: This cable was not redacted by Wikileaks.
null
Diana T Fritz  03/20/2007 05:24:44 PM  From  DB/Inbox:  Search Results

Cable 
Text:                                                                      
                                                                           
      
CONFIDENTIAL

SIPDIS
TELEGRAM                                       September 28, 2003


To:       No Action Addressee                                    

Action:   Unknown                                                

From:     AMEMBASSY ABU DHABI (ABU DHABI 4361 - UNKNOWN)         

TAGS:     EPET, PGOV, BEXP, ENRG, ECON, EINV                     

Captions: None                                                   

Subject:  UAE'S REPRESENTATIVE TO OPEC "SURPRISED" BY DECISION TO
           CUT QUOTAS                                            

Ref:      None                                                   
_________________________________________________________________
C O N F I D E N T I A L        ABU DHABI 04361

SIPDIS
CXABU:
    ACTION: ECON 
    INFO:   P/M AMB DCM POL 
Laser1:
    INFO:   FCS 

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: ECON: OJOHN
DRAFTED: ECON:CCRUMPLER
CLEARED: NONE

VZCZCADI035
OO RUEHC RUEHHH RUEHDE RUCPDOC RHEBAAA RHEHNSC
DE RUEHAD #4361 2710949
ZNY CCCCC ZZH
O 280949Z SEP 03
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1841
INFO RUEHHH/OPEC COLLECTIVE IMMEDIATE
RUEHDE/AMCONSUL DUBAI IMMEDIATE 3431
RUCPDOC/USDOC WASHDC IMMEDIATE
RHEBAAA/DEPT OF ENERGY WASHDC IMMEDIATE
RHEHNSC/NSC WASHDC IMMEDIATE
C O N F I D E N T I A L ABU DHABI 004361 
 
SIPDIS 
 
DEPT FOR NEA/RA, NEA/ARP, INR/EC, EB/CBA, S/CT, 
EB/ESC/IEC/EPC FOR MCMANUS 
USDOE FOR INT'L AFFAIRS -- COBURN, CALIENDO, AND HUTTO 
USDOC FOR 1000/OC/ 
USDOC FOR 4520/ITA/IEP/ONE 
USDOC FOR 4530/ITA/MAC/ONE/DGUGLIELMI 
4500/ITA/MAC/DAS/WILLIAMSON 
3131/CS/OIO/ANESA 
NSA FOR RICK KARP 
 
E.O. 12958: DECL 09/28/08 
TAGS: EPET, PGOV, BEXP, ENRG, ECON, EINV, TC 
SUBJECT: UAE'S REPRESENTATIVE TO OPEC "SURPRISED" BY 
DECISION TO CUT QUOTAS 
 
1.  (U) Classified by Economic Section Chief Oliver B. 
John, for reasons 1.5 (B) and (D). 
 
2.  (C) In a 9/28 meeting with Econ Chief, UAE 
Ministry of Petroleum Director of Economic Affairs and 
OPEC delegate Hamdan Al-Akbari said he was "a little 
bit surprised" by the organization's decision last 
week to cut output by 900,000 barrels per day.  Al- 
Akbari admitted that it was a strange position to take 
during the fourth quarter when demand for heating oil 
in the northern hemisphere would be expected to rise. 
 
3.  (C) Although Al-Akbari did not/not attend the OPEC 
meeting last week (he was returning to the UAE from 
the WTO meetings in Cancun), he speculated that the 
Iraqi delegate's presence at OPEC Headquarters might 
have influenced the decision.  He noted that the Iraqi 
Oil Minister has made some very bold statements 
earlier in the week at the IMF meetings in Dubai about 
ramping up Iraq's oil production, and these statements 
may have caused some concern among OPEC members.  Al- 
Akbari posited that downward pressure on oil prices 
and increased Russian production might also have led 
to OPEC's decision to cut quotas.  He also was not 
able to say which delegation had pushed for the 
change. 
 
4.  (C) Comment: Although Al-Akbari did not attend the 
OPEC meeting himself, he is privy to the UAE's OPEC 
strategy by virtue of his position as the Oil 
Ministry's head technocrat and, until very recently, 
Chief of Staff to the UAE Oil Minister.  Al-Akbari's 
remarks indicate that the UAEG did not plan to cut 
production at last week's meeting, but went along with 
the rest of the pack once it became clear that there 
was consensus for reducing quotas in November.  End 
comment. 
 
Wahba 

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