The Council of Ministers reiterated on Monday that the fair price for oil ranges between $75 and $80 a barrel, and it praised OPEC's stand to keep the output steady. The Cabinet reviewed the results of the May 28 OPEC meeting, in which the 12-member organization decided to keep its output unchanged amid surging prices. The Cabinet agreed that OPEC's move, which helped drive crude prices above $68 a barrel in London trading Monday, would not have a negative impact on the recovery of the global economy. On Monday, oil prices rose to near $68 a barrel, hitting a new high for the year as world stock markets rallied and investors banked on hopes that the global recession is easing. Benchmark crude for July delivery was up $1.41 to $67.72 a barrel by mid-afternoon in Europe in electronic trading on the New York Mercantile Exchange, the highest level since early November. It had traded above $68 earlier in the day. King Abdullah, Custodian of the Two Holy Mosques, briefed the Cabinet on the outcome of his talks, consultations and meetings with leaders and envoys of friendly countries as well as his meeting with Yemeni President Ali Abdullah Saleh and the call he received from Egyptian President Muhammad Hosni Mubarak. The Cabinet listened to a report on the seismic activity monitored by the seismographs which showed that the tremors were decreasing, especially in Harrat Al-Shaqah, and that no volcanic vapors were detected, Minister of Culture and Information Dr. Abdul Aziz Khoja told SPA after the Cabinet meeting. Looking into local issues on the agenda, the Cabinet endorsed an aviation pact between the Kingdom and Japan signed in Jeddah on August 18, 2008, which stipulates that each of the airlines maintains a set of concessions. The Cabinet also approved a memorandum of understanding between King Abdul Aziz Darat and the National Documentation House in the Republic of Sudan. The agreement encourages studies and research and allows researchers in the two countries to exchange information besides organizing joint exhibitions and exchange of visits. It also approved a recommendation made by the Permanent Committee in the Supreme Economic Council (SEC) for the establishment of a joint stock company named Amana Company for Cooperative Insurance.
