OPEC kingpin Saudi Arabia has the capacity to meet all market requirements for oil and wants to see crude prices between 25 to 30 dollars a barrel, the kingdom's crown prince said in comments published Monday. "I truly tell you that the kingdom does not want to harm the world economy ... We believe that prices should range between 25 and 30 dollars a barrel," Prince Abdullah bin Abdul Aziz told Kuwait's Al-Siyassa newspaper.
It was the second time in a week that the leading oil producer and exporter has moved to assure a nervous market where prices have soared to new highs. Oil Minister Ali al-Nuaimi said Wednesday the kingdom was prepared to hike output by 1.3 million barrels per day (bpd) in a bid to cope with world demand and curb soaring prices. Prince Abdullah, the kingdom's de facto ruler, said his country has the capacity to meet increasing demand, but blamed international oil majors for hiking oil prices. "We have the (production) capacity to meet current requirements of the market," he said. "At the same time, I want to assure you that we have no hand in the current increase in prices. Big companies dealing with the crude are responsible for the increase, through stockpiling and speculations," he said. World crude prices spiralled to a new high of 46.91 dollars a barrel in Asian trading Monday as a nervous market ignored producers' assurances that there was enough oil to meet demand. The International Energy Agency estimated on Wednesday that the Organisation of Petroleum Exporting Countries (OPEC), straining to increase production, is set to add 400,000 bpd of capacity this year and slightly more than 2.0 million bpd from 2005 to 2007. |