"The Riyadh Agreement of March 22, 1998, brokered by the oil ministers of Mexico, Saudi
Arabia and Venezuela, and the subsequent reductions in production aimed at supporting the
market that were announced by the three countries and by other oil exporters, both OPEC and
non-OPEC, marked an important milestone in cooperation and resolve among producers. The
market response to the announced production reductions by seventeen oil exporters was
positive. Since then the oil ministers of Mexico, Saudi Arabia and Venezuela have continued
their consultations and market analyses. With a view towards building on the existing spirit of
cooperation and to enhance market stability, the three ministers met in Amsterdam on June 4,
1998 to review the market situation and its future outlook. They noted that despite efforts by
their countries and other exporters to restrain production along the previously agreed pledges
of reductions, the market is still unbalanced and stocks of both crude and refined are high by
historical standards. These excessive stocks need to be reduced to bring the market to balance
and prices to acceptable levels for the health of the world economy, for the maintenance of
sustainable growth in the oil industry, and for the benefit of producers and consumers.
To this end, they agreed that their countries would contribute to this endeavor by a further
reduction of 450,000 barrels per day, distributed as follows: Saudi Arabia, 225,000 b/d;
Venezuela, 125,000 b/d; and Mexico, 100,000 b/d. This reduction is over and above the base
volume of the Riyadh Agreement of March 22, 1998, and will come into effect on July 1, 1998.
The three countries are confident that other producers will join in this effort to stabilize the
market. Accordingly, they will consult with other oil exporters, both OPEC and non-OPEC,
ahead of the upcoming meetings of the oil ministers of the Gulf Cooperation Council (GCC)
countries on June 16, and the OPEC ministerial meeting on June 24."