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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (49060)	9/15/2005 6:42:19 PM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

Saudi Arabia ready to boost output if needed DUBAI: Top oil exporter Saudi Arabia has again moved to reassure markets it stands ready to boost its output to fill any crude supply gap or increase in demand. But Crown Prince Sultan, in remarks run by state news agency SPA on Thursday, blamed a price spike on a worldwide refining crunch and said there was no shortage of crude on the market. “We are concerned about the rise in oil prices and confirm the kingdom’s readiness to do its utmost to compensate for shortages in supply and to meet increasing demand,” Sultan told a US-Saudi business group event held in New York on Wednesday. “The current rise in oil prices does not stem from a shortage in crude oil supplies but is due to, as everyone knows, increased demand for products and a shortage in refining capacity...” he said. British finance minister Gordon Brown this week renewed a call for OPEC to pump more oil to rein-in rising crude prices. The Organisation of the Petroleum Exporting Countries meets in Vienna next week and its president has said he would propose the group raise its output by 500,000 bpd. But Qatari Energy Minister Abdullah al-Attiyah said the proposed hike was unlikely to ease prices and urged consuming states to facilitate licensing of new refineries to address a capacity crunch. “I do not think that this will have an effect,” Qatar’s state news agency QNA quoted him as saying in a radio interview. “The sharp demand for products is the reason behind the rise (in prices) and not demand for crude oil,” Attiyah said. Spare capacity: OPEC has already raised output by more than 4 million barrels per day over the past 3 years and is operating close to full capacity. Only Saudi Arabia has any significant capacity but its crude is not suitable for refiners to process into transport fuels and the closure of US refineries by Hurricane Katrina means OPEC is struggling to find buyers for more supplies on world markets. Riyadh has said it can boost its output to 11 million bpd if needed. The OPEC giant has been pumping around 9.5 million bpd since May.