Saudis to make another oil output hike in July: UN chief
Tuesday, 17 June 2008
LONDON, June 16 (AFP): UN chief Ban Ki-moon arrived in London Sunday after a 24-hour visit to Saudi Arabia during which he was assured the OPEC powerhouse would further increase oil output to meet heightened demand from its customers.
On the flight from Jeddah, Ban told reporters that he had just spoken to Saudi Oil Minister Ali al-Nuaimi by telephone, who told him that Riyadh would raise production by 200,000 barrels a day in July in addition to a hike of 300,000 barrels made in June.
The UN boss said this was why the Saudis were hosting a high- level meeting of oil producers and consumers in Jeddah on June 22.
During his 24-hour visit at the Saudis' invitation, Ban also held talks with King Abdullah, Foreign Minister Saud al-Faisal and Crown Prince Sultan Abdul Aziz al-Saud.
While reaping record profits, the Saudis are concerned record prices might dampen economic growth and lead to lower oil demand, as is the case in the United States and other developed countries, The New York Times reported.
It said the high prices are also making alternative fuels more viable, threatening the long-term prospects of the oil-based economy of Saudi Arabia, which is currently pumping 9.45 million barrels a day.
OPEC Friday cut its 2008 estimate of growth in world oil demand, as high prices and slower economic growth put a brake on demand in major industrialised countries, the United States in particular.
Global oil demand was now projected to rise by 1.28 per cent in 2008, it said in its June monthly report.
Oil prices-which have witnessed a fivefold jump since 2003 -- fell back Friday to just under 135 dollars a barrel.
The Group of Eight (G8) finance chiefs from major industrialised nations have called for an investigation by the International Monetary Fund into the wild swings in energy prices.
In Berlin, German Economy Minister Michael Glos warned in an interview published Sunday that record oil prices could lead to job losses in Europe's biggest economy.
Another report from Singapore adds: Oil prices eased today after the United Nations chief said top OPEC crude producer Saudi Arabia agreed to increase production and does not want to be blamed for the impact of soaring prices.
New York's main oil futures contract, light sweet crude for July delivery, was 71 cents lower at 134.15 dollars a barrel.
The contract closed at 134.86 after shedding 1.88 dollars on the New York Mercantile Exchange Friday.
Brent North Sea crude for August delivery was 59 cents lower at 134.52.
Prices have soared since breaking through the 100-dollar level at the start of the year, and hit all-time highs of 139.12 in New York and 138.12 in London on June 6.
Global finance officials fear the high oil prices pose a threat to world economic growth, while truckers and others in Europe and Asia have held protests against the rising cost of fuel.
On the flight from Jeddah, Ban told reporters that he had just spoken to Saudi Oil Minister Ali al-Nuaimi by telephone, who told him that Riyadh would raise production by 200,000 barrels a day in July in addition to a hike of 300,000 barrels made in June.
The UN boss said this was why the Saudis were hosting a high- level meeting of oil producers and consumers in Jeddah on June 22.
During his 24-hour visit at the Saudis' invitation, Ban also held talks with King Abdullah, Foreign Minister Saud al-Faisal and Crown Prince Sultan Abdul Aziz al-Saud.
While reaping record profits, the Saudis are concerned record prices might dampen economic growth and lead to lower oil demand, as is the case in the United States and other developed countries, The New York Times reported.
It said the high prices are also making alternative fuels more viable, threatening the long-term prospects of the oil-based economy of Saudi Arabia, which is currently pumping 9.45 million barrels a day.
OPEC Friday cut its 2008 estimate of growth in world oil demand, as high prices and slower economic growth put a brake on demand in major industrialised countries, the United States in particular.
Global oil demand was now projected to rise by 1.28 per cent in 2008, it said in its June monthly report.
Oil prices-which have witnessed a fivefold jump since 2003 -- fell back Friday to just under 135 dollars a barrel.
The Group of Eight (G8) finance chiefs from major industrialised nations have called for an investigation by the International Monetary Fund into the wild swings in energy prices.
In Berlin, German Economy Minister Michael Glos warned in an interview published Sunday that record oil prices could lead to job losses in Europe's biggest economy.
Another report from Singapore adds: Oil prices eased today after the United Nations chief said top OPEC crude producer Saudi Arabia agreed to increase production and does not want to be blamed for the impact of soaring prices.
New York's main oil futures contract, light sweet crude for July delivery, was 71 cents lower at 134.15 dollars a barrel.
The contract closed at 134.86 after shedding 1.88 dollars on the New York Mercantile Exchange Friday.
Brent North Sea crude for August delivery was 59 cents lower at 134.52.
Prices have soared since breaking through the 100-dollar level at the start of the year, and hit all-time highs of 139.12 in New York and 138.12 in London on June 6.
Global finance officials fear the high oil prices pose a threat to world economic growth, while truckers and others in Europe and Asia have held protests against the rising cost of fuel.