Saudi's Naimi says wants oil prices under $50/bbl

Saudi's Naimi says wants oil prices under $50/bbl

Vienna (Platts)--14Jun2005


Saudi Arabian oil minister Ali Naimi said Tuesday in Vienna that an increase
in the OPEC ceiling of 500,000 b/d when ministers meet Wednesday was
"reasonable" because prices needed to fall below $50/bbl. 

Speaking to reporters a day ahead of an OPEC meeting to determine output
policy for the second half of the year, Naimi reiterated his support for an
increase in the group's 27.5-mil b/d ceiling although markets were well
supplied. "Supply is plentiful. There is no panic," Naimi said. But OPEC giant
Saudi Arabia would back an increase in output because "the world will be more
comfortable with a price below $50/bbl." He said Saudi Arabia was producing
9.5-mil b/d currently and would maintain that level in July if demand was
there. "There is no reason why not if demand is there." But Naimi again
repeated that the market was suffering from a lack of investment in new
refineries able to process sour crude of the type produced by most OPEC
members. "Build, build, build more refineries," he said.

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