2000 News Story

Oil minister comments on review of market

Minister of Petroleum and Mineral Resources Ali Al-Naimi stated today that the Kingdom is currently reviewing the status of the international oil market in terms of price, supply and demand, and inventory levels for crude. He said the goal is to make sure that the market is well-balanced and the price stable at a level acceptable to both producers and consumers, adding that Saudi Arabia and other producers will soon take the necessary steps to moderate the recent surge in oil prices. He declared that they are not happy with the artificially high prices, which could be harmful to both producers and consumers, and are currently carefully examining the causes. One cause could be that the demand has been higher than anticipated, since there are signs of a strong demand growth in Asia. If there are changes in the fundamentals of the oil market, then action may be taken in order to stabilize the market.