Tuesday, March 20, 2012

Saudi Arabia will act to stabilise oil market and prices: cabinet

SINGAPORE: Saudi Arabia has pledged to ensure there will be sufficient crude oil to meet demand, even as the international community ramps up sanctions on Iran in an effort to halt its nuclear activities.

According to a report on the English daily Arab News, the Saudi cabinet on Monday released a statement vowing to "ensure adequate oil supply, stabilise (the) oil market and bring down oil prices to reasonable levels to both producers, consumers, and the petroleum industry".

The cabinet made the statement after reviewing the results of last week's international Energy Forum in Kuwait, the Saudi-based newspaper said.

Saudi oil minister Ali al-Naimi last week said the kingdom -- the world's leading crude producer -- stood ready to cover any shortfalls of crude supplies in the market, blaming speculation as the main cause for the price volatility.

The assurances from Saudi Arabia come as Iran -- the world's fourth largest oil producer -- comes under increasing sanctions from the international community to halt its nuclear activities, which they fear include research on developing atomic weapons.

The International Energy Agency has previously said that it expects exports from Iran to fall by about 800,000 barrels per day to one million barrels in the second half of this year.

Energy-hungry nations in Asia have voiced concerns over the availability of alternative sources to replace Iranian imports cut off by sanctions.

Oil prices inched lower in Asian trade Tuesday following Saudi Arabia's vow to help stabilise prices.

New York's main contract, West Texas Intermediate crude for delivery in April, shed 53 cents to $107.56 per barrel while Brent North Sea crude for May settlement was down 34 cents at $125.37.

- AFP/wm

View the original article here

Source From Channel News Asia

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