Oil consumers, producers to tackle soaring prices at Jeddah meet
Friday, 20 June 2008
LONDON, June 19 (AFP): The world's major oil producers and consumers meet in Jeddah on Sunday to discuss record-high oil prices that are threatening the global economy amid hopes that host Saudi Arabia will increase output.
The OPEC kingpin has called the meeting in response to a record- breaking run up in oil prices, which have more than doubled over the past year to strike almost 140 dollars per barrel.
Soaring oil prices, which ramp up the cost of motor fuel, kerosene and domestic energy supplies, pose a threat to economic growth because higher inflation leads central banks to raise interest rates, economists argue.
The Jeddah Energy Meeting, hosted by Saudi Arabia's King Abdullah, will also feature Abdullah al-Badri, secretary general of the Organization of Petroleum Exporting Countries, whose 13 member nations pump 40 per cent of the world's oil.
The high-profile event will be addressed by British Prime Minister Gordon Brown, while French Ecology Minister Jean-Louis Borloo and German Economy Minister Michael Glos will also attend.
Energy Secretary Samuel Bodman will represent the United States in Jeddah but the White House has said that it does not expect any Jeddah commitment to increase production.
Other European countries, the European Commission, the International Energy Agency-the energy watchdog for industrialised countries-and the heads of investment banks Morgan Stanley and Goldman Sachs have all been invited.
Ahead of Jeddah, there has been mounting speculation about a fresh output hike from Saudi Arabia, which is the world's biggest crude exporter and the biggest player in the OPEC cartel.
The desert kingdom currently produces 9.45 million bpd after announcing an increase of 300,000 bpd last month after a visit by US President George W. Bush.
Meanwhile, Iran has spoken out against a possible Saudi output increase. The second-biggest OPEC producer argues that there are adequate oil supplies to meet demand.
Another report from Singapore adds: Oil prices fell in Asia today as investors took profits ahead of a high-profile weekend meeting in Saudi Arabia between oil producers and consumer nations, dealers said.
New York's main oil futures contract, light sweet crude for July delivery, fell 61 cents to 136.07 dollars a barrel after a jump of 2.67 dollars to a close of 136.68 dollars Wednesday at the New York Mercantile Exchange.
Brent North Sea crude for August delivery eased 54 cents to 135.90 dollars per barrel after a gain of 2.72 dollars to 136.44 dollars Wednesday in London.
The OPEC kingpin has called the meeting in response to a record- breaking run up in oil prices, which have more than doubled over the past year to strike almost 140 dollars per barrel.
Soaring oil prices, which ramp up the cost of motor fuel, kerosene and domestic energy supplies, pose a threat to economic growth because higher inflation leads central banks to raise interest rates, economists argue.
The Jeddah Energy Meeting, hosted by Saudi Arabia's King Abdullah, will also feature Abdullah al-Badri, secretary general of the Organization of Petroleum Exporting Countries, whose 13 member nations pump 40 per cent of the world's oil.
The high-profile event will be addressed by British Prime Minister Gordon Brown, while French Ecology Minister Jean-Louis Borloo and German Economy Minister Michael Glos will also attend.
Energy Secretary Samuel Bodman will represent the United States in Jeddah but the White House has said that it does not expect any Jeddah commitment to increase production.
Other European countries, the European Commission, the International Energy Agency-the energy watchdog for industrialised countries-and the heads of investment banks Morgan Stanley and Goldman Sachs have all been invited.
Ahead of Jeddah, there has been mounting speculation about a fresh output hike from Saudi Arabia, which is the world's biggest crude exporter and the biggest player in the OPEC cartel.
The desert kingdom currently produces 9.45 million bpd after announcing an increase of 300,000 bpd last month after a visit by US President George W. Bush.
Meanwhile, Iran has spoken out against a possible Saudi output increase. The second-biggest OPEC producer argues that there are adequate oil supplies to meet demand.
Another report from Singapore adds: Oil prices fell in Asia today as investors took profits ahead of a high-profile weekend meeting in Saudi Arabia between oil producers and consumer nations, dealers said.
New York's main oil futures contract, light sweet crude for July delivery, fell 61 cents to 136.07 dollars a barrel after a jump of 2.67 dollars to a close of 136.68 dollars Wednesday at the New York Mercantile Exchange.
Brent North Sea crude for August delivery eased 54 cents to 135.90 dollars per barrel after a gain of 2.72 dollars to 136.44 dollars Wednesday in London.