Saudi says against 40 usd oil price level, but OPEC´s options limited -UPDATE
[Gee, I know they are so so so sad they are making all this money - mish]
Tuesday, September 14, 2004 7:36:42 AM
2004-09-14 08:36:42 Saudi says against 40 usd oil price level, but OPEC's options limited -UPDATE (updates with comments on oil market, Saudi spare capacity)
VIENNA (AFX) - Saudi Arabia said OPEC is against a 40 usd price tag on oil, but admitted there is little the 11-member cartel can do to reduce it if speculators continue to drive the market higher
"We do not support this price and OPEC does not want this price," Saudi Oil Minister Ali al-Nuaimi told a group of reporters a day ahead of a meeting of the cartel in Vienna at which the issue of production quotas is expected to be raised
Oil is currently skirting at between 40-45 usd per barrel
Al-Nuaimi said OPEC is doing what it can to take the heat out of oil prices after they rocketed in recent months on fears of political turmoil in the Middle East and soaring demand in China
"OPEC is doing its part, but OPEC is not the only player in town and people want to make money," he added
"They know there is no better way to make it than do what they are doing in the market. There is not much we can do. It is very legitimate, people want to make money." For its part, the world's largest producer will continue to pump 9.5 mln barrels of oil per day as long as there is demand, and has the capacity to produce an extra 1 mln, possibly more, if the need arises. Asked how long he believes Saudi Arabia will maintain its current high output, he said: "It depends on demand and it depends on customers." Yesterday, al-Nuaimi said Saudi Arabia is not in favour of raising OPEC's official production quota or its current 22-28 usd target band for prices
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