Saudi Oil Minister Not Worried By Winter Demand

Text of report in English by Kuwaiti news agency Kuna website

Kuwait, 28 November: Saudi Minister of Petroleum and Mineral Resources Ali Ibrahim al-Nu’ayymi said Monday [28 November] that neither the status of the international oil market nor the winter season demand are worrying.

Al-Nu’ayymi said upon his arrival at Kuwait International Airport this morning that, in principle, the Organization of the Petroleum Exporting Countries (OPEC) is not planning to cut oil prices in its upcoming meeting in mid-December.

He told Kuna that matters will be discussed at the meeting and only then the appropriate decisions can be issued.

Al-Nu’ayymi said OPEC is keen on keeping oil prices stable, pointing out that oil on the market is more than the demanded quantity but the market is stable.

He added that the suggestion of adding two million barrels of oil to the market will also be discussed at the meeting.

Saudi Minister Al-Nu’ayymi is currently attending the third Gulf European Oil and Gas Technologies Conference hosted by Kuwait under the patronage of H.H. the Prime Minister Shaykh Sabah Al-Ahmad al- Jabir al-Sabah.

Al- Nu’ayymi was received today at Kuwait International Airport by Kuwaiti Minister of Energy Ahmad al-Fahd al-Ahmad al-Sabah and Ministry Undersecretary Isa al-Oun.

[Kuwait Kuna news agency web site in English at 0828 gmt on 28 November, carries the following report on the Saudi minister's activities and statement in Kuwait:

"Whatever steps the Organization of Petroleum Exporting Countries ministers would decide on at its upcoming meeting in Kuwait would be in the interests of both consumers and producers and after thorough consideration of the situation in the world market, Saudi Petroleum and Mineral Resources Minister Ali Ibrahim Al-Nu'ayymi Monday stated.

"In remarks on the sidelines of the third GCC-European energy technology forum that kicked off here today, the minister urged the public: `Wait for OPEC's decisions as they would be calculated to suit best all parties' interests.' On European consumers' complaints over price of oil per/barrel, he said the cost to consumers in the region is mainly due to taxes, which account for 70 per cent of the cost, with the remaining 30 per cent rooted in production, refining, shipping, marketing and all else.

"He added the consumers concentrate on the price they have to pay but often fail to realize what factors, specifically, hike the price.

"Saudi Arabia is the world's biggest oil producer and exporter holding a quota of 9.5 million b/d of OPEC's overall output."]