Saudis willing to boost oil production but fail to give details

SAUDI ARABIA is willing to produce more oil if customers need it, the kingdom’s oil minister said yesterday, without citing any specific output increase.

Saudi Arabia, the world’s largest oil exporter, has been under intense pressure from the US and other oil consumers to increase its crude output to help slow the soaring price of oil.

The kingdom has already announced modest increases and said it would pump 9.7 million barrels a day, beginning in July. But those increases have not done much to stem the skyrocketing price of oil, which closed near $135 a barrel on Friday.

The high prices are affecting consumers and economies across the United States, Europe and much of the world. Many countries have experienced social unrest as rising fuel prices have driven significant increases in the cost of food and other basic goods.

It was unclear if Oil Minister Ali al-Naimi’s remarks yesterday at a high-level oil summit in the port city of Jiddah would quell global concerns.

In his speech to the summit, Al-Naimi, reiterated his government’s position that the recent run-up in prices has not been caused by a supply shortage. But he said he also believes each country must do what it can “to alleviate these difficult conditions”. For the remainder of the year “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 materialises and our customers tell us they are needed,” said al-Naimi.

The US and other Western nations have put increasing pressure on Saudi Arabia to increase production, saying insufficient oil production has not kept pace with growing demand.

Earlier yesterday, King Abdullah also said Saudi Arabia was not to blame for soaring oil prices and instead pointed his finger at speculators, high fuel taxes in consuming countries and increased oil consumption in developing economies.

British Prime Minister Gordon Brown also called for future commitments from producers for increased oil and gas supply, but urged that all countries should improve energy efficiency and develop alternative sources of energy, including nuclear power.