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  Statement by Saudi Oil Minister Al-Naimi

    AMSTERDAM, The Netherlands, May 21 /PRNewswire/ -- The office of the
Minister of Petroleum and Mineral Resources of the Kingdom of Saudi Arabia
released the following statement today:

    On the current world oil market situation and the increase in oil prices
above the upper limit of OPEC's reference price, H.E. Ali Al-Naimi, Minister
of Petroleum & Mineral Resources of Saudi Arabia stated that the recent
revisions in oil demand and supply projections for the coming months point to
an increase in the required production from OPEC by an excess of 2.0 mbd.  He
emphasized that out of the concern for market stability, supply continuity and
the growth of the world economy, especially of our fellow developing countries
who stand to be more adversely affected by the sudden and excessive oil price
increase, Saudi Arabia will propose an increase in OPEC production ceiling by
more than two million barrels per day and has already allocated to its
customers around 9.0 mbd as of June 2004.
    H.E. Al-Naimi further stated that Saudi Arabia will continue to monitor
market developments and coordinate with OPEC to keep markets well supplied in
order to maintain prices within the agreed range acceptable to producers and
consumers and conducive to economic growth especially in the developing
countries.
    He emphasized that the upcoming ninth International Energy Forum to be
held in Amsterdam in the next few days will provide an opportunity to exchange
views between producers and consumers on the underlying causes of recent oil
price increase and ways and means that each will contribute to market
stability.

    This press release is distributed by Qorvis Communications on behalf of
the Royal Embassy of Saudi Arabia.  Additional information is available at the
Department of Justice in Washington, DC.


  SOURCE Royal Embassy of Saudi Arabia, Information Office




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Related links:
  • http://www.saudiembassy.net
    CONTACT:
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    Office, +1-202-337-4076

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