Oil hit $119.13 the barrel day after Saudis put oil capacity rise on hold

In a series of statements, including one by Saudi King Abdullah, the world’s biggest oil producer has suspended plans for a further increase in long-term production capacity. debkafile reports: The Saudi warning to consumers that it sees no need for further expansion reversing their recent pledges to the US president George W. Bush and Vice President Dick Cheney. It is also challenged by the world’s major consumers.
In Rome, where 90 energy ministers and 40 oil company executives are attending an energy forum, Kuwait’s acting oil minister Mohammed al-Aleem argued that supply and demand factors are not to blame for the soaring price of crude oil. “The oil price rises as the dollar gets weaker,” he said. OPEC can increase supply if there is a need,” he said.
Libyan oil chief Shokri Ghanem said speculation may be adding about $20 to today’s oil price.

Print Friendly, PDF & Email