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TIlE HYDI!OCARSON8 MARKlITS
The motion for 8 resolution c81ling for tr8nsperency of oper8t~onB on
the Rotterdam and Genoa hydrocarbons ~rkets is bessd on ~ fundamental
considsrstions ,
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The very heavy reliance of the western economiss on outside soorces
for supplies of hydrocarbons OVer the coming decade.
Although this dependence is diminishing considerably, it eont'nue8
to havs a highly detrimental effect on the balancs of payments of the
Community Member States.
The increasingly active part played by the spot markets.
Set up
originally to promote the availability of hydrocarbons, the Rotterdam
and Genoa spot markets ars contributing to escalating prices and
speculation.
The tensions prevailing on the hydrocarbons markets, arising from the
rsduction in supplies from the OPEC countries or from political events
in the Near and Middle East - mare than two-thirds of the EEC's
supplies of hydrocarbons come frOm the Middle East.
These tensions
are prompting the westorn countrios. and in particular the Member
States, to outbid each other on the markets.
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4. ChanSea in the structure of the oil markets.
As far as supply is concerned, the oil exporting countries are tending
to ·organize production! with a view to maintaining terms of trad~
with the industrialized countries.
Quite apart from prlc8s, supplies
are liable to be reduced in the 19B08 owing to a cut-back in oil
production.
_ At the saroe time.
the length of supply contracts is being cut from
three years to one.
Following the example of Iran and Algeria. moet of the OPEC
countriss
want to exercise a measure of control downstream of the production of
the raw material by aligning prices on those charged for refined
producte on the market.
_ Since 1973 independent companies seem to have been monopolizing
supply contracts.
In the face of this tense eituation, which the Member States will
eventually find intolerable, the development of an EEC oil policy is a
prerequisite of a common energy policy.
The
pressnt motion for a resolution has a threefolc objective I
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PE/GS/20/BO