OPEC Stymied; Iraqis Still Reject Oil Quotas

GENEVA — The effort to boost world oil prices remained in jeopardy Wednesday as Iraq dug in its heels, holding to the position that it will not agree to the same oil production quotas as other members of the Organization of Petroleum Exporting Countries.

OPEC ministers here canceled another meeting and went shopping as they waited in vain for word that Saudi Arabia’s King Fahd had persuaded Iraq President Saddam Hussein to agree to a proposed 5% to 10% production cut and a fixed oil price of $18 a barrel.

Ministers privately voiced anger with Iraq, which is exempt from OPEC production quotas in effect since August. Iran, which is at war with Iraq and is insisting that its foe be brought back into the quota system, proposed Wednesday that the Iraqis be kicked out of OPEC.

The ministerial session has lasted seven days, but ministers have met as a group just once since Saturday. OPEC leaders had hoped to reach agreement quickly and dispel the organization’s image as weak and disorganized.

Several ministers conceded Wednesday that they might have to adjourn after extending the current production quota of 17 million barrels per day into next year.

That possibility drove down the price of a contract for January delivery of crude oil by 24 cents to $15.86 a barrel on the New York Mercantile Exchange.

Another proposal to break the impasse was to exempt both Iran and Iraq from quotas, which would let both nations save face while achieving a significant overall cut in oil production.

It would, however, do little practical good for Iran, whose war damage has prevented it from producing as much oil as its quota allows and which wants Iraq’s higher export production cut back by an OPEC accord.