NEW SET OF PRICE HIKES FORSEEN Nigeria may itopOPEC NEW YORK (AP) - Nigeria has told oil companies it is considering raising the price of some of its crude oil above the $23.50-a-barrel OPEC ceiling, in- dustry sources said yesterday - a move experts said could trigger another round of oil price increases. Nigeria is the second-largest foreign supplier of crude oil to the United States, after Saudi Arabia, accounting for about 15 per cent of the oil used by U.S. refiners. BECAUSE Nigerian oil is among the best in the world, it is particularly valuable in making gasoline. But it is currently unclear what effect the proposed price increase would have on prices at the gas pump in the United States. Sources at oil, companies that do business with Nigeria said the Nigerian government has proposed an increase of three to five dollars in the price of a barrel of Nigerian oil, which is curren- tly pegged at the Organization of Petroleum Exporting Countries ceiling price of $23.50. " They- told us they are contemplating a three to five dollar premium on the oil" they sell to us," said one such buyer of crude oil from the African nation. "It's still at the negotiation stage." . 1 l " THE BUYER - who asked not to be identified - said the chances of the Nigerian proposal taking effect were "50-50," but he added: "The market is tight, and they probably have more buyers lined up there to buy than there's oil to sell, and they think they can make it stick." The proposed increase, which would be effective Oct..1, would cover only what is known as "buyback" oil - oil produced by oil companies in Nigeria for the government there, and then sold back to the companies. Companies also produce "equity" oil in Nigeria, which is theirs to use as they wish. Sources estimated 600,000 barrels of the 2.2 million barrels of oil produced daily in Nigeria is buyback oil, and would be affected by the proposed price hike. But one industry source hinted that if the price went up on part of the Nigerian produciton, the price of the rest would soon follow. "IF YOU'RE going to be selling some oil, no matter what your cost is, you're going to be selling it at market price," the source said. "If the price of your Nigerian oil goes up, why not raise your other prices as well?" Experts agreed the key issue in the proposed price increase was its seeming violation of the OPEC agreement not to raise prices above $23.50 a barreltat least until the cartel meets again in December. That ceiling, set last June, consists of an 18-dollars-a-barrel base price, a maximum of $2 in premiums, or surcharges, and as much as $3.50 in dif- ferential to take into account varying quality of oil. OPEC nations that produce lower-quality oil are charging prices below the ceiling, and Saudi Arabia, OPEC's largest and most moderate member, sells most of its oil at 18 dollars-a-barrel. ce ing SOME OPEC members have tested the limit by selling small amounts of oil at higher prices on the spot market, which is not affected by the ceiling. The spot market is where oil not covered by long-term contracts changes hands. The Nigerian move appears to violate the ceiling because it affects oil sold under long-term contracts, sources said. "Their response is, 'We're not changing the price, it's a premium,' . said one oilexecutive involved in his firm's negotiations with Nigeria. "But that's a little transparent." The Michigan Daily-Tuesday, September 18, 1979-Page,7 Residents clean up L.A. fire remains LOS ANGELES (AP) - (Many Hollywood Hills residents, including a television star and a musician, began sizing up their losses yesterday as firefighters mopped up the smoldering remains of a spectacular brush fire that destroyed 24 expensive homes. Five other costly homes were damaged by the fire which burned 300 acres and caused $3.9 million damage from the time it began Sunday after- noon until it was contained early yesterday. . THE FIRE was visible for miles in the smog-shrouded Los Angeles basin, but was actually the smallest of eight fires that had burned nearly 35,000 acres in Southern California by late yesterday. The air over the. city was clearer yesterday than-it had been last week, the worst week of smog in 25 years. Of- ficials said an atmospheric inversion,, which had trapped the smog close to th4.s ground had lifted. During the weekend, cars and houses were covered with a fine layer of ash from the fires, blown by the winds as, far as 25 to 30 miles. NED CHATFIELD, a fire depar, tment spokesman, said the Hollywoo4' Hills fire in the_ highly inflammabI4 brush was caused by children playing with fireworks, which are illegal in Los Angeles. Four youths questioned in; connection with the blaze were released:; yesterday, but would be charged with illegal possession of fireworks. New clause may delay Cellar contract settlement (Continued from Page 1) however, that the union would meet tonight to discuss its reaction to the board decision. The disputed fee would be either two dollars or five dollars a month per em- ployee, depending on the full or part- time status of the worker. Some union representatives objected to the "prin- ciple" of the grandparent clause, rather than the actual money involved. THE LOCAL union, which was established last year, represents ap- proximately 60 employees, about 40 of whom have actually joined the union. The workers went on strike last month, but returned to their jobs after a brief closing of the store. The major issue in negotiations has been the management structure of the store, an issue both the board and the union have agreed will be resolved by a joint employee-management commit- tee after a contract is ratified. BOUFFANT Hair Fashion I and Hair Weave Center 62.. 662-8401 1 MRS HOOMicroscopic Hair Analysis MRS. HOOKS 'The Complete Hair'Care Clinic for Problem Hair' FREHAIR TREATMENT WITH COUPON Geology student lionored ANN ARBOR - Neil A. Wells, tniversity of Michigan graduate student in geology, is one of 24 graduate students in the nation to receive a $500 grant-in-aid for the 1979-80 academic year from the American Association of Petroleum Geologists (AAPG), accpr- ding to University Information Ser- vices. According to the AAPG Foundation, the grants are given each year to graduate student research projects largely related to the search for economic sedimentary minerals or to environmental geology. Awards are based on "qualifications of the student, the originality and ,imagination evident in the proposed project, likelihood of a contribution to the knowledge of energy and mineral resources, and program of the specific university." Wells received the grant for his work on "Nearshore Marine and Continental Facies in the Eocene of Northern Pakistan." ENERGY. We can't afford to waste it. INTERESTED IN: " Newspapers Magazines " Radio * Tele- vision " Communications Teaching " Public Relations * Publicity * Photojournalism AUDITIONS for T.S. Eliot's MIrier IN ( h b ia w ,N o Advertising. If so. then JOIN omen to nicatio ns. lm w = I= mw September 17, 8. O0pm 18 _N st. 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