2001 News Story

Saudi and Iranian oil ministers discuss market

Minister of Petroleum and Mineral Resources Ali Al-Naimi, at a joint press conference today with visiting Iranian oil minister Bijan Zanganeh, declared that the reduction in oil output by the Organization of Petroleum Exporting Countries (OPEC) is a mechanism to stabilize prices within the range of U.S. $ 22 to 28 per barrel, and stressed that it will not have a negative effect on global economic growth, pointing out that this growth increases demand for oil. Commenting that his discussions with the Iranian oil minister were "between two friendly countries very much interested in the situation of the global oil market", he said they both expressed their desire to maintain market stability, within OPEC and through dialogue with non-OPEC countries. OPEC's output, he explained, constitutes about 40 percent of total world production as compared with 60 percent non-OPEC.