Saudi Arabia proposes to raise oil output, OPEC to take decision next month
OPEC oil ministers on Saturday said they were "deeply concerned" about rising oil prices, but declined to agree on a Saudi proposal to boost production as a way to push prices down.
Meeting at an informal session in Amsterdam Saturday, the oil ministers have been under intense pressure to raise daily output.
U.S. Energy Secretary Spencer Abraham, who was present at the Amsterdam meeting, said there was a clear imbalance in the supply and demand of crude oil, and called for strong action from OPEC to drive prices lower.
Saudi Arabia, the world's leading oil producer, on Friday proposed OPEC members increase daily production by two million barrels per day. World oil prices eased on news of the Saudi plan.
The president of OPEC, Purnomo Yusgiantoro, said the high prices are caused by several factors, including increased demand, bottlenecks in production, and geopolitical tensions.
He conveyed OPEC would discuss plans to boost output at its next formal meeting, scheduled to be held in Beirut next month.
On his part, Ali Al-Naimi, the Saudi Minister of Petroleum & Mineral Resources, said 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. (menareport.com)
© 2004 Mena Report (www.menareport.com)