The Michigan Daily-Thursday, June 28, 1979-Page 5
OPEC forges tentative price deal
GENEVA, Switzerland (AP) - The world oil cartel barrels a day OPEC's largest producer - would be central dispute was between Saudi Arabia and Iran.
forged a tentative deal last night under which $18 a barrel. EARLIER, SEVERAL compromise proposals fell
moderates like Saudi Arabia would sell oil at a base The officials said OPEC would set a ceiling of $23.50 through. Abdul Aziz Bin Khalifa Al-Thani, oil
cost of $18 a barrel and price radicals would get up to a barrel, including premiums added to the base price minister of Qatar, had said the cartel was close to an
$5.50 more including surcharges, conference sources to account for quality differences. accord on putting a ceiling on oil prices of a bit more
said. When the formal session adjourned, the cartel had than $20 a barrel but keeping the base price below
The new price structure would add about four cents been unable to reach a decision on a uniform base that.
a gallon to the U.S. price of gasoline and heating oil. price to charge the world for oil, with Saudi Arabia Meanwhile, in New York, Chief Economist James
The preliminary accord was reached shortly after holding out for less than $20 a barrel, a senior O'Leary of the United States Trust Co. said the OPEC
ministers of the 13-nation Organization of Petroleum delegate said. increase, when coupled with the world oil shortage
Exporting Countries (OPEC) adjourned for the night THE MEETING, originally expected to end which has set in since the Iranian revolution last win-
in apparent deadlock over oil price increase. yesterday with agreement on a new price of about ter, "greatly increases the likelihood that the
TAUEH ABDUL-KARIM, Iraq's oil minister, and $20 including surcharges, was to resume this mor- recession is going to be more serious."
delegates from Libya and the United Arab Emirates ning. Although the new OPEC price should add four cents
said the cartel was likely to set a base price for most The senior delegate, who did not want to be iden- to the cost of a gallon of fuel in the United States, the
OPEC members of $20 a barrel. The Iraqi minister tified, said the meeting was "nearly deadlocked" price of a gallon of fuel might climb by as much as 15
said the base price for Saudi Arabia - at nine million when it adjourned for the night, and sources said the cents a gallon by year-end .
TOKYO (AP) - President Carter,
angered over international criticism of
U.S. energy policy, and leaders of six
other industrialized nations formally
opened an economic summit conferen-
ce today, hoping to heal deep divisions
over how to handle the world's moun-
ting oil crisis.
Carter was understood to be deeply
angered by French President Valery
Giscard d'Estaing's accusation that the
United States has done virtually
nothing to save oil and relieve the
pressure on world oil prices.
EVEN AS CARTER and the leaders
of Japan, West Germany, France,
Great Britain, Canada, and Italy
opened their conference at the Akasaka
Palace, they learned that the world's
major oil exporting nations were about
to unleash another major hike in oil
The decision by the Organization of
Petroleum Exporting Countries
(OPEC) meeting in Geneva, Swit-
zerland, put additional pressure on the
seven summit nations to find a way to
reduce oil consumption in the in-
But a U.S. source disclosed that deep
differences still existed among summit
leaders. Officials of the nations met into
the night yesterday, but found no com-
Gunmen fired upon a truck near Ben-
ton Harbor yesterday in Michigan's fir-
st major incident of violence since the
start of the independent truckers strike,
but the driver escaped injury.
But the 400 members of the Michigan
chapter of the protesting Independent
Truckers Association (ITA) abandoned
picket lines and blockades outside truck
stops and gasoline depots. A spokesman
said most of them simply went home.
"TO MY knowledge, there's no real
activity going on," said Michigan ITA
President Harland Wilcox. "There may
be a few pickets here and there, but
most of the guys have gone home. The
picketing at the truck stops was causing
a lot of hard feelings, so the guys are
In Lansing, ITA spokesman Martin
Reay said the pickets already have ac-
complished their major purpose -
directing the attention of the public and
government leaders to truckers'
"We're going to concentrate our ef-
forts right here," Reay said. "We've
got the ball rolling real good now."
THE GUNFIRE shattered the win-
dshield on the passenger side of the
semi-trailer driven by Paul J. Ding, 59,
of South Haven, on I-196 four miles nor-
th of the I-94 junction near Benton Har-
Prior to the incident, Michigan had
escaped most of the strike-associated
violence that has plagued other states.
See TRUCK, Page 10
Carter hugged 17-year-old Japanese high school student Chiharu Yamada in
Shimoda, Japan yesterday, after she revealed her admiration for his book,
"Why Not the Best." In response, Carter said her English was excellent and she
should be working at the United Nations. Carter also autographed her copy of
promise, the source said.
THE UNITED States wants specific
limits set on the amount of oil each
country may import for the rest of this
year and next. Other nations, led by
West Germany, favor simply an overall
reduction target for Europe and a
freeze on U.S. imports, which
Americans say is unacceptable.
However, an administration official
said he was certain a compromise
would be worked out before the summit
Meanwhile, it was announced that
Carter decided not to vaction in Hawaii
and will return directly to the nation's
capital Sunday after his visit to South
Korea, which follows the summit.
ONE AIDE expressed concern about
how the president would look relaxing
on a beach while Americans waited for
gasoline for July 4th holiday travel.
"I'd like to spend a few days in Hawaii,
but I'd also like to see Jimmy Carter
elected," the aide said.
On the eve of the fifth economic
summit, the participants remained in
doubt about the size of an expected in-
crease in oil prices.
Strike causes drop in local business
(Continued from Page 1)
across the country to local markets.
"As long as the truckers get it to
Detroit, we're fine," said Susan LeDuc,
employee of Ann Arbor Fruit and
Produce Co., 529 Detroit St. "I think
everyone is pretty wary," she con-
tinued. "Things have been scarce."
MANY MERCHANTS say prices
have risen already and as a result of the
truckers' protest, will continue to rise if
the strike does not end. "Prices are
speeding way up in the air," said John
Sarha, owner of Main Grocery, 207 N.
Main St., who reported that business
has been down "maybe 10 per cent"
since the strike began.
Other stores noted business
slackening, and said they were worried
'panic buying' might force prices
higher and aggravate shortages. Dex-
ter Folsom, meat manager of Kroger,
2603 Jackson, said "as of yet" the store
hasn't had any problem with shortages.
However, if "people start panic buying
we could have some problems." He said
although he didn't seea major influx of
people stocking up on meat and
produce, he belived customers were
"buying a little early for the fourth of
Farmer Jack, 2103 W. Stadium Ave.,
also reported no shortage problems,
are both members of large Michigan
supermarkets chains. Folsom said
Kroger's own drivers transport food to
local stores from Kroger warehouses.
"Kroger drivers will haul to the store,
as long as they have product," he ex-
plained. If Kroger trucks can't get
produce and meat, stores will be short,
he added. Folsom said this week's
deliveries arrived on time, but next
week the situation may be different.
UNCERTAINTY OF future supplies
was also expressed by personnel of
smaller stores. "We don't know what's
going to be tomorrow," said Carlo.
"Next week will be the worst."
A few of the shipments that normally
go by truck are being sent by rail. But
some merchants said they had reser-
vations about sending food by train.
"Rail is not a very good way to
ship-too much is lost," said Sam Sch-
midt, manager of Steeb Brothers
Market, 3707 Washtenaw.
The effects of a continuing truckers'
strike would be shortages in other mer-
chandise, said George White, owner of
White's Market, 609 E. William St.
"Trucks haul everything-that's
it-period," he said.