Saudi King says oil policy aims for sufficient supplies at fair price

Saudi Arabia’s King Abdullah has said the country’s oil policy aims at providing sufficient supplies to world markets and achieving fair prices.

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By  OGME Staff Published  December 4, 2005

Saudi Arabia’s King Abdullah has said the country’s oil policy aims at providing sufficient supplies to world markets and achieving fair prices. He also said producers had acted responsibly by increasing production whenever there was a shortage. “Saudi oil policy is based on two aspects. The first is realising a reasonable and fair price for oil, and the second is to provide adequate supplies of oil to all consumers,” said King Abdullah. He was speaking at a ceremony to inaugurate the Riyadh-based International Energy Forum, which promotes dialogue between consuming and producing oil nations. Turning the tables on the western nations who have been pressing for greater transparency, Ali Al Niami, Saudi oil minister, speaking at the same forum, has asked the consuming nations for a ‘road map’ of future oil demand. Al Niami also said the world’s largest producer, Saudi Arabia, was spending US $50 billion to raise output capacity, but wanted a clearer picture of where the extra production is needed. “Producers are seeking a road map for demand in consuming nations,” Al Naimi said. “As producers, we do not want to build the facilities which will not be met by demand.” Al Naimi also said markets are well supplied, and oil refinery bottlenecks, not crude oil shortages, were pushing up prices. He also said refiners had not taken up Opec’s offer to pump all of its remaining 2 million barrels per day.

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