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LONDON: Saudi Arabia, an Organization of the
Petroleum-Exporting Countries (OPEC) powerhouse, would further
increase oil output to meet heightened demand from its customers,
United Nations (UN) chief Ban Ki Moon assured late Sunday.
On the flight from Jeddah, Ban
told reporters that he had just spoken by telephone to Saudi Oil
Minister Ali al-Nuaimi, who told him that Riyadh would raise
production by 200,000 barrels a day in July in addition to a hike of
300,000 barrels made in June.
He said the minister sought to
clarify earlier media reports suggesting that Riyadh could raise
output in July by about half a million barrels a day to 10 million
barrels.
“The Saudis did increase
production in June by 300,000 barrels. For the month of July, it
will be an increase of 200,000 barrels more in response to requests
from customers,” Ban said, citing his conversation with al-Nuaimi.
“They [the Saudis] will respond
positively whenever there is a request from their customers, so
there is no shortage,” he added. “They don’t want to be
blamed” for the fallout of the soaring oil prices.
But Ban also quoted al-Nuaimi as
saying that he felt oil-consuming countries should also play their
part to stabilize prices by bringing down national taxes and
combating speculators.
The UN boss said this was why the
Saudis were hosting a high-level meeting of oil producers and
consumers in Jeddah on June 22.
During his 24-hour visit at the
Saudis’ invitation, Ban also held talks with King Abdullah,
Foreign Minister Saud al-Faisal and Crown Prince Sultan Abdul Aziz
al-Saud.
He said they shared the concern
he expressed about the impact of the skyrocketing oil prices on
global food security.
He said he also told them the oil
price surge was threatening the ability of the least developed
countries to achieve the poverty-reduction Millennium Development
Goals and the world’s capacity to deal with the threat of climate
change.
Earlier Sunday in the Red Sea
port city of Jeddah, Ban told reporters that the Saudis, whose
desert kingdom is the largest oil producer in OPEC, viewed oil
prices as “abnormally high” and were willing to bring them down.
He said his talks on Saturday
with King Abdullah had focused on the link between the soaring world
crude prices and the worsening food crisis as well as climate
change.
The Saudis “seem to be
considering very seriously how they can address this issue by
increasing production,” Ban said. “I expect that they will take
some concrete measures.”
While reaping record profits, the
Saudis are concerned record prices might dampen economic growth and
lead to lower oil demand, as is the case in the United States and
other developed countries, The New York Times reported.
It said the high prices are also
making alternative fuels more viable, threatening the long-term
prospects of the oil-based economy of Saudi Arabia, which is
currently pumping 9.45 million barrels a day.
OPEC on Friday cut its 2008
estimate of growth in world oil demand, as high prices and slower
economic growth put a brake on demand in major industrialized
countries, the United States in particular.
Global oil demand was now
projected to rise by 1.28 percent in 2008, it said in its June
monthly report.
--AFP
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