Saudi Arabia boosts oil production, urges
Monday, 23 June 2008
JEDDAH, June 22 (Agencies): Saudi Arabia will increase its oil production by 200,000 barrels a day to 9.7 million next month and may pump more later this year if needed, Saudi Oil Minister Ali al-Naimi told producers and consumers in Jeddah today.
Leaders of global oil powers and consumer nations gathered in Jeddah today seeking ways to control spiralling oil prices seen as a mounting threat to the world economy.
Oil markets have lurched by up to 10 dollars a day in recent weeks, falling last week after China increased fuel prices, but many analysts expect new attacks in Nigeria to add to tensions this week.
While governments have highlighted refining shortages and increased demand, producer nations say action has also got to be taken to rein in "speculators" who they say have played a key role in the doubling of a price of a barrel over the past year.
Naimi's comments to government and business leaders came after crude oil rose to a record $139.89 in New York on June 16. Saudi King Abdullah said his country, the world's biggest oil exporter, seeks ``reasonable'' prices.
The International Energy Agency estimates that world oil use this year will climb 800,000 barrels a day, or 1 per cent, as demand increases in emerging markets. Stagnating production from Russia and the North Sea are also contributing to higher prices, which have touched off strikes, riots and accelerating inflation in nations around the world.
``Saudi Arabia is prepared and willing to produce additional barrels of crude above and beyond the 9.7 million barrels per day, which we plan to produce during the month of July, if demand for such quantities materializes and our customers tell us they are needed,'' Naimi said.
He said Saudi Arabia's capacity will be 12.5 million barrels a day by the end of 2009 and may rise to 15 million after that if necessary.
The President of the Organization of Petroleum Exporting Countries, Chakib Khelil, blamed $135 oil on speculative investors, the subprime credit crisis and geopolitics, rather than a shortage of supply. Khelil, who is also Algeria's oil minister, today dismissed the argument voiced by consuming nations that possible supply shortages are driving up prices.
``The concern over future oil supply is not a new phenomenon,'' he told reporters in Jeddah.
Leaders of global oil powers and consumer nations gathered in Jeddah today seeking ways to control spiralling oil prices seen as a mounting threat to the world economy.
Oil markets have lurched by up to 10 dollars a day in recent weeks, falling last week after China increased fuel prices, but many analysts expect new attacks in Nigeria to add to tensions this week.
While governments have highlighted refining shortages and increased demand, producer nations say action has also got to be taken to rein in "speculators" who they say have played a key role in the doubling of a price of a barrel over the past year.
Naimi's comments to government and business leaders came after crude oil rose to a record $139.89 in New York on June 16. Saudi King Abdullah said his country, the world's biggest oil exporter, seeks ``reasonable'' prices.
The International Energy Agency estimates that world oil use this year will climb 800,000 barrels a day, or 1 per cent, as demand increases in emerging markets. Stagnating production from Russia and the North Sea are also contributing to higher prices, which have touched off strikes, riots and accelerating inflation in nations around the world.
``Saudi Arabia is prepared and willing to produce additional barrels of crude above and beyond the 9.7 million barrels per day, which we plan to produce during the month of July, if demand for such quantities materializes and our customers tell us they are needed,'' Naimi said.
He said Saudi Arabia's capacity will be 12.5 million barrels a day by the end of 2009 and may rise to 15 million after that if necessary.
The President of the Organization of Petroleum Exporting Countries, Chakib Khelil, blamed $135 oil on speculative investors, the subprime credit crisis and geopolitics, rather than a shortage of supply. Khelil, who is also Algeria's oil minister, today dismissed the argument voiced by consuming nations that possible supply shortages are driving up prices.
``The concern over future oil supply is not a new phenomenon,'' he told reporters in Jeddah.