KUWAITI DAILY SAYS OPEC CREDIBILITY AT STAKE
  OPEC's credibility faces fresh scrutiny
  in coming weeks amid signs of a significant rise in supplies of
  oil to international oil markets, the Kuwait daily al-Qabas
  said.
      In an article headlined, "Gulf oil sources say Middle East
  production up 1.4 mln bpd," it warned OPEC's official prices
  could face fresh pressure from international oil companies
  seeking cheaper supplies.
      It did not say whether only OPEC or both OPEC and other
  producers were behind the reported rise in Mideast output. Nor
  did it specify if the sources were official or other contacts. 
     "The sources said the credibility of OPEC would come under
  fresh scrutiny from today (Monday), with activity in the
  European and American markets," the daily said.
      The sources were quoted as saying that after OPEC had in
  March demonstrated its commitment to quota agreements, some
  members had raised output last week. It gave no details.
      "Dealers in oil markets were now waiting to see if Opec was
  able to control production, or whether the days of cheating and
  producing over quotas has begun anew," it said.
      The sources warned that "maybe the (price of a) barrel of
  oil will fall below 18, perhaps 17.80 dlrs this week or next if
  there is no control on supplies," it said.
      "The sources believed a return of oil below 18 dlrs a barrel
  may open the doors for international oil companies to pressure
  OPEC over contract prices, similar to the struggle last March,"
  it said, apparently referring to resistance by buyers to lift
  from Qatar unless it gave price discounts.
      "More than one official has warned OPEC would find its
  solidarity under scrutiny by the end of April or start of May,"
  it said, noting demand usually fell with the onset of summer.
  

