2004 News Story

Kingdom expresses concern about oil market

Minister of Petroleum and Minerals Ali Al-Naimi has expressed the concern of the Kingdom of Saudi Arabia about current oil market conditions and the decline in oil prices, emphasizing that at this juncture, balancing the oil market is a shared responsibility of all oil producers, whether members of OPEC or not.

Pointing out that the OPEC ceiling of 27.5 mbd adopted in Jakarta last December is a reasonable level and in line with actual production at that time as well as with estimates of the production required from OPEC during 1998, Minister Al-Naimi disputed the idea that the decline is due to that decision, adding that the reasons are in fact many, including the mildness of the weather, the economic slowdown in southeast Asia, the increase in non-OPEC production, and quota violations by certain OPEC members.
Minister Al-Naimi affirmed that OPEC's role in market stability lies in its full adherence to the ceiling of the Jakarta agreement, and stated that consultations among OPEC members are underway.  He went on to say that if meaningful efforts are made towards adherence to quotas within the said agreement, and market imbalance continues, then Saudi Arabia would welcome any concerted effort by OPEC to restore stability to the oil market.