Saudi Arabia to work for oil market stability

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By Muhammad Samman, Arab News Staff

TAIF, 31 July — Saudi Arabia, the world’s leading oil exporter, yesterday vowed to preserve international oil market stability with a view to serving the interests of both producers and consumers.

The assurance came after a meeting here of the Supreme Petroleum Council (SPC) chaired by Prince Abdullah, the regent, and attended by Prince Sultan, second deputy premier and minister of defense and aviation.

“The Council affirms the continuity of the Kingdom’s oil policy aimed at achieving stability in the oil market in order to guarantee the interests of producers and consumers, continuity of world economic growth and stability of oil supplies and prices at reasonable levels,” a statement issued after the meeting said.

Saudi Arabia has been instrumental in working with OPEC and non-OPEC producers to maintain oil prices within a band of $22 to $28 a barrel. The market responded favorably to the SPC decision as benchmark Brent crude prices for September delivery stood at $25.42.

However, stability in the oil markets, as well as prices, has looked vulnerable in recent weeks after non-OPEC members, especially Russia, abandoned the agreement and began pumping an extra 150,000 barrels daily. The SPC meeting endorsed Saudi Aramco’s work plan for the next five years, its general budget and financial report for 2000 and 2001. It also appointed external auditors to verify the accounts of Aramco and its affiliates.

The meeting took six decisions related to the mining sector, which was expected to make eight percent growth in the current Seventh Five-Year Development Plan. The Kingdom is set to issue a new law for investment in the sector.