Saudi Arabian King Abdullah says oil prices "too high": TV

New Delhi (Platts)--22Jan2006

Saudi Arabian King Abdullah was quoted Sunday as saying current global
crude prices were high, but he attributed high prices to market speculation
and an increase in demand.
     "We believe the current price of oil is too high. We feel high prices are
damaging the developing countries," the Saudi monarch told India's NDTV
television channel in an interview.
    "Prices need to be at a more moderate level," said King Abdullah, leader
of the world's biggest oil producing and exporting nation.
    "(Prices) are market driven. The speculation in the market has impacted
the price of oil. The increase in demand in the world has also impacted the
price," he told the Indian television channel ahead of his official visit to
India starting Jan 24.
     Another reason for high crude price was due to refinery and
infrastructure shortages in major producing countries, leading to increase in
gasoline prices, which, in turn, pushed up global crude prices, said King
Abdullah, who will be the first Saudi monarchy to visit India in roughly 50
years.
     He advised India to look at expanding refinery capacity to ensure that
it has sufficient capability in the future to supply its markets with
gasoline and products as much as it requires.
     Saudi Arabia is ready to meet the energy requirements of India and other
countries in the future, the king said. "We have the ability and capability
to provide all the energy needs of India, and, as well as, the energy needs
of other countries," he said, rejecting notions that Saudi Arabia's
ability to meet future demand had declined.
     "We have a realistic understanding of the picture of the size of Saudi
oil reserves. The Kingdom of Saudi Arabia oil reserves will be there for the
long time for every one. We don't believe that our reserves or production
capabilities are going to be affected over the next 15 or 20 or 30 years. We
believe our reserves will last much much longer than that. We also believe
that a large portion of Saudi Arabia has not been explored as yet," King
Abdullah said.
     The king will be heading a 25-member high-level Saudi delegation
comprising the Saudi oil, finance and ministers to India, the second stop of a
four-nation tour of Asia. King Abdullah is on his first official overseas
visit since assuming power following the death of his half-brother King Fahd
last August. He left Riyadh earlier for China. He will also visit Malaysia and
Pakistan.

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