02-06-05

Saudi Arabia said it was ready to boost output but called for international cooperation to secure market stability. The Saudi cabinet at its weekly session stressed "its determination to fulfil promises to guarantee the stability of oil supply and prices".

The cabinet also expressed readiness to "raise output as required by the supply and demand factors in global oil markets, and in the interests of both the producers and consumers". But "the Kingdom's effort to meet the requirements and challenges of energy in the world, and the balance and stability of global oil markets requires a parallel international effort", it said.

During a visit to the US, Petroleum Minister Eng. Ali Al Naimi, said Riyadh was ready to boost output but called on consumers such as the United States to do more at their end to bring down high prices.
Al Naimi then said Saudi Arabia was prepared to boost production from about 9.5 mm bpd to 11 mm right away, "but there is no refining capacity (worldwide) to handle 11mm".

Oil prices have fallen sharply over the month of May to around $ 49 a barrel after peaking at $ 58.28 in early April because of fears of a massive supply crunch heading into the US summer driving season.
Reassuring sounds from Saudi Arabia and its partners in OPEC have since eased the supply concerns, along with rising crude stocks in the US.

Source: Saudi Economic Survey