Minister of Petroleum and Mineral Resources Ali Al-Naimi inaugurates the 2nd Petroleum Media Forum of Gulf Cooperation Council (GCC) states in Riyadh on Sunday evening. — SPA
RIYADH — Oil producers outside the Organization of the Petroleum Exporting Countries (OPEC) must cooperate to boost falling crude prices, Minister of Petroleum and Mineral Resources Ali Al-Naimi said here on Monday.
In a press statement issued after the opening of 2nd Petroleum Media Forum of Gulf Cooperation Council (GCC) states, he said, “GCC countries have made serious efforts to for balance oil prices, but the prices are set by the market.”
Replying to a question, Al-Naimi said: “We refuse to take responsibility alone because OPEC produces 30 percent of market output and 70 percent comes from outside.”
Asked whether OPEC would be willing to work with non-members, Al-Naimi pointed to the crash of 1998 when the the organization cooperated with other producers to cut output and support oil prices.
“Today, the situation is difficult. We tried, met with them but did not succeed because they insisted that OPEC should take the responsibility alone,” said Al-Naimi, in reference to talks with non-OPEC producers ahead of the OPEC meeting in November.
“All must contribute if we want to improve prices because it is in the interest of all,” the Saudi minister said.
Naimi said the Kingdom had the capacity to supply any new client with crude.
Saudi Arabia had no objection to new oil producers joining OPEC, he said, adding that several countries have in the past turned down invitations to become members of the organization. He also defended the oil policy of Gulf states, saying they were taking measures to stabilize the market.
“We are not against anyone. We are with all to support stability in the market and to support a balance between supply and demand,” Al-Naimi said.
Oil prices fell in Asian trade Monday with US benchmark West Texas Intermediate for May delivery down 65 cents at $45.92 and Brent tumbling 58 cents to $54.74.
Bloomberg News quoted Naimi as saying on Sunday that his country is producing almost 10 million barrels of crude a day.
Saudi Arabia pumped 9.85 million barrels a day in February, according to Bloomberg.
Crude prices slumped by about 60 percent between June and February, weighed down by a glut of global supplies and concerns about stalling demand. — Agencies
