Energy
Saudi Arabia Willing to Produce More Oil
TSC Staff
06/22/08 - 11:56 AM EDT
Saudi Arabia's oil minister said Sunday the kingdom was willing to produce more oil if its customers need it, according to a published media report.
Oil Minister Ali al-Naimi did not, however, provide a specific target for such an increase, according to the report by the Associated Press.
With the price of oil at stratospheric levels -- a barrel of crude closed near $135 Friday -- the U.S. and other countries have been pressuring oil-rich Saudi Arabia to ratchet up production.
The kingdom has already announced that it would pump 9.7 million barrels a day starting in July, the report noted.
For the remainder of 2008, "Saudi Arabia is willing to produce additional barrels of crude oil above and beyond the 9.7 million barrels per day which we plan to produce during the month of July, if demand for such quantities materializes and our customers tell us they are needed," al-Naimi said in an advance copy of a speech, which was obtained by the AP. He planned to deliver the speech at a special oil summit in Jiddah.
The minister also reversed previous statements by saying Saudi Arabia was willing to invest to increase its spare oil production capacity above the current 12.5 million barrels a day that is planned for the end of 2009, according to the AP report.
Al-Naimi reiterated his government's position that the current surge in oil prices is not the result of a supply shortage, but added that each country must do what it can to improve the current situation, the report said.