FRANCE: TOP WORLD OIL EXPORTER SAUDI ARABIA WILL WORK TO KEEP SPARE SUPPLY CAPACITY OF AT LEAST 1.5 MILLION BARRELS PER DAY

Record ID: 189780

  • Title: FRANCE: TOP WORLD OIL EXPORTER SAUDI ARABIA WILL WORK TO KEEP SPARE SUPPLY CAPACITY OF AT LEAST 1.5 MILLION BARRELS PER DAY
  • Date: 23rd April 2005
  • Summary: (BN13) PARIS, FRANCE (APRIL 21, 2005) (REUTERS) 1. SLV SAUDI OIL MINISTER ALI AL-NAIMI WALKING TO PODIUM; SLV OTHER DELEGATE SITTING; SLV SCREEN READING "WELCOME TO THE 6TH INTERNATIONAL OIL SUMMIT"; SLV SAUDI OIL MINISTER ALI AL-NAIMI AT PODIUM; SCU GRAPHICS READING "REFINING CAPACITY/IMPORTS AND EXPORTS" 0.46 2. ALI AL NAIMI SURROUNDED BY REPORTERS 0.56 3. (SOUNDBITE) (Arabic) ALI AL-NAIMI, SAUDI OIL MINISTER SAYING "The objective of this Oil Summit is to restore the stability of the international market and reassure the world that Saudi Arabia enforces its policy based, first of all, on moderate prices. We take care to continue to assure the stability of the market and put an end to instability of prices, and preserve a fair price for all the countries, either the oil-producing countries or the consuming nations. But above all, we must take into consideration the developing consuming nations and the actual price which is negatively affecting their economies. As I said before, there will be great oil projects allowing Saudi Arabia to increase its production to three million barrels per day as of 2006 and until 2009. These projects are part of a global plan to face the future demand. As I said in my speech, if need be, we are ready to continue our capacity expansion to 15 million barrels per day and sustain such capacity for over 50 years. All these projects have one objective: reassure the oil market. All these projects are in the frame of our policy which is to enforce moderate oil prices." 3.11 MUTE: 4. LAS TILT DOWN CEILING / NEWS CONFERENCE 3.20 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 8th May 2005 13:00
  • Keywords:
  • Location: PARIS, FRANCE
  • Country: France
  • Reuters ID: LVAU053A1756VLQI5RER36OBRSU
  • Story Text: Top world oil exporter Saudi Arabia will work to
    keep spare supply capacity of at least 1.5 million barrels
    per day
    Saudi Arabia is committed to maintaining spare
    capacity of 1.5-2.0 million barrels per day (bpd), even as
    it pumps 9.5 million bpd to try to cool world oil markets,
    Saudi Oil Minister Ali al-Naimi said on Thursday (April 21, 2005)
    at an Oil conference in Paris.

    U.S. President George W. Bush, who will meet Saudi
    Arabia's de facto leader Crown Prince Abdullah on Monday,
    has said he is seeking a clear answer from the Saudi
    government about the size of its spare oil production
    capacity.

    Naimi reiterated that the kingdom -- which controls the
    bulk of the world's spare production capacity -- aimed to
    maintain a cushion of 1.5 to 2.0 million bpd.

    "The objective of this Oil Summit, is to restore the
    stability of the international market and reassure the
    world that Saudi Arabia enforces its policy based, first of
    all, on moderate prices. We take care to continue to assure
    the stability of the market and put an end to instability
    of prices, and preserve a fair price for all the countries,
    either the oil-producing countries or the consuming
    nations. But above all, we must take into consideration the
    developing consuming nations and the actual price which is
    negatively affecting their economies," he said.

    Naimi then added: "As I said before, there will be
    great oil projects allowing Saudi Arabia to increase its
    production to 3 million barrels per day as of 2006 and
    until 2009. These projects are part of a global plan to face the
    future
    demand.. As I said in my speech, if need
    be, we are ready to continue our capacity expansion to 15
    million barrels per day and sustain such capacity for over
    50 years. All these projects have one objective, reassure
    the oil market. All these projects are in the frame of our
    policy which is to enforce moderate oil prices", he said.

    Rising world oil demand, especially in Asia's emerging
    economies, has strained international supplies to the
    limit, leaving little spare production capacity and pushing
    prices to record highs.

    OPEC members, especially Saudi Arabia, have raised
    production to try and build a stock buffer for higher
    demand expected at the end of this year.

    Industry sources have said that the kingdom will raise
    supplies to its term customers in Asia and the major
    international oil companies by 500,000 bpd next month,
    putting it near 10 million bpd for the first time since
    1980.

    Naimi said the ability of the kingdom and other OPEC
    producers to control price rises had been weakened by the
    growing influence of big-money funds on prices and refinery
    bottlenecks in consuming nations.

    U.S. crude prices earlier this month hit record levels
    above 58 U.S. dollars a barrel and on Thursday were trading
    above 53 U.S. dollars.

    Naimi said that oil market fundamentals were sound, and
    that rising interest rates would draw investors out of
    energy markets and into other asset classes.

    A lack of refining capacity in consuming nations,
    especially to meet tighter environmental fuel
    specifications, was also contributing to price volatility,
    Naimi said.


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