CONFIDENTIAL
SECRETARY OF STATE'S MEETING WITH HIGH COMMISSIONERS, WEDNESDAY 21 NOVEMBER 1984
OIL PRICES (DEFENSIVE)
Points to make
Oil Market
1. It is in the interests of consumers and producers alike
that the world oil market should be stable. The onset of
winter should help strengthen the market, provided that traders
are confident of OPEC's ability to hole to its pricing and
production agreements.
UKCS Prices
2. The British National Oil Corporation's (BNOC) price cut
on 17 October followed action by other producers (Saudi Arabia,
Norway). It was a technical adjustment reflecting the decline
in the value of light crudes in comparison to heavy crudes.
3. While BNOC can resist short-term speculative movements on
the spot market, it cannot stand against underlying market
trends, whether upwards or downwards.
Energy, Science and Space Departmer!
14 November 1984
CONFIDENTIAL