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Naimi Says Saudi Arabia, Gulf States Seeking Stable Oil Prices

Posted by WARREN MOSLER on October 9th, 2012

This reads a lot like the Saudis have about run out of excess capacity?

Naimi Says Saudi Arabia, Gulf States Seeking Stable Oil Prices

By Deema Almashabi and Glen Carey

October 9 (Bloomberg) — Saudi Arabia, the world’s biggest exporter of crude oil, will help meet demand “fully” and will work with other member states of the Gulf Cooperation Council to try to stabilize prices, Oil Minister Ali al-Naimi said.

“We will work towards moderating the price,” al-Naimi told reporters in Riyadh today ahead of a conference of oil ministers from the council’s six members. “We will meet the market demands fully.”

Crude for November delivery climbed as much as $1 to $90.33 a barrel in electronic trading on the New York Mercantile Exchange and was at $89.93 at 5:09 a.m. local time. Brent oil for November settlement gained 81 cents, or 0.7 percent, to $112.63 a barrel on the London-based ICE Futures Europe exchange.

Saudi Arabia is the largest nation in the GCC, a political and economic confederation that includes Kuwait, Qatar and the United Arab Emirates. The four states belong also to the Organization of Petroleum Exporting Countries. The GCC’s other members are Bahrain and Oman. Together, the council accounted for 24 percent of worldwide crude supply in 2011 and 30 percent of total reserves, according to BP Plc’s Statistical Review of World Energy, published in June 2012.

“Oil prices rose in March to levels not seen since 2008, which may adversely affect the global economy, particularly the economies of developing and emerging countries, as well as negatively impact global oil demand,” al-Naimi said in a speech at the conference.

“We continued our policy of allaying market fears, providing supplies when needed and limiting high price fluctuations during the ensuing months till this present day,” he said.

5 Responses to “Naimi Says Saudi Arabia, Gulf States Seeking Stable Oil Prices”

  1. John Says:

    I’m really tired of these gas prices. Seems like all I’m doing lately is giving my college kid money to fill up her tank. These prices are a drag on everything.
    I think we’re seeing a top right now though. I don’t believe there’s any shortage of oil on the horizon, and as far as tensions in the middle east causing the price to rise, i thinks that’s baloney. When have there not been “tensions” in the middle east? IMO, I think the speculators are driving these prices, which is of course their right to do. Howver, it is also my right to hope the speculators get their butts handed to them when the price drops:)

    Reply

  2. Neil Wilson Says:

    “I’m really tired of these gas prices. Seems like all I’m doing lately is giving my college kid money to fill up her tank. These prices are a drag on everything.”

    ‘Gas’ prices here in the UK are the equivalent of $8.29 per US gallon.

    Reply

    ESM Reply:

    @Neil Wilson,

    “‘Gas’ prices here in the UK are the equivalent of $8.29 per US gallon.”

    Less than I thought it would be. Usually, UK prices in pounds are similar to US prices in dollars, which would equate to $5.18/gal. That’s still more than in the US except certain parts of California, but the UK has much, much higher ‘petrol’ taxes (over 2 pounds/gal versus $0.50/gal).

    Of course in the US people drive much more. I used to commute 50 miles to work (100 miles round-trip), and a colleague of mine drove 140 miles round-trip.

    Reply

  3. Monica Smith Says:

    Prices don’t rise, they are increased. What we don’t know is the increasing agency. That said, the problem is that there’s simply not enough money circulating quickly enough to mediate our transactions at the level we’d like. Because our currency is tied up in activities that have nothing to do with producing goods and services.
    Using price to drive policy decisions is a really bad idea.

    Reply

  4. Ed Rombach Says:

    Are the Petro-dollars’s days numbered?

    http://www.youtube.com/watch?v=K9VLp0FcJ6I&feature=youtu.be

    Reply

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