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Saudi Arabia: Oil market 'oversupplied, over-priced'
AFP
CARACAS
Petroleumworld.com 06 02 06Saudi Arabian Oil Minister Ali al-Nuaimi said Thursday that the global crude market is "oversupplied and over-priced", and also said that the OPEC cartel would welcome new members.
Speaking at the start of a meeting here of the Organization of the Petroleum Exporting Countries, Nuaimi told reporters that the market was oversupplied by about one million barrels per day.
Asked for the fair price of a barrel of oil, he said: "It is whatever the consumer wants to pay.
"We have always obliged the customer," the Saudi minister said, while adding that consuming nations believe that "we don't need any more oil".
Nuaimi declined to speculate on what ministers from the 11-nation oil cartel would decide about output levels at their meeting in the Venezuelan capital.
Several other OPEC nations have indicated that the group will maintain its current total production quota of 28 million barrels a day, which is a 25-year high.
But Venezuela has said an output cut could be on the cards when the cartel meets next in September. Nuaimi commented: "Wait and see."
Despite sky-high prices, he said the market was "healthy" as demand was growing, but agreed that elevated prices could curb demand in oil consuming nations.
In a speech to the OPEC ministers, Venezuelan President Hugo Chavez said Thursday that oil prices were "fair" and should not be allowed to dip below 50 dollars a barrel.
"Isn't everybody entitled to his own opinion?" Nuaimi responded.
The Saudi minister refused to comment on another call by the populist Chavez, a strident critic of US policies, to price oil in euros rather than dollars.
Aside from output levels, the Caracas meeting has also seen informal discussions about admitting Angola, Sudan and possibly Ecuador into the cartel's ranks.
"We welcome any producing and exporting country that wants to join," Nuaimi said.
"The more, the better -- because we are a great organisation!"
AFP 01 2033 GMT 06 06
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