Richard Tafoya
Jun 22nd, 2008, 08:53 PM
LA Times:
http://www.latimes.com/news/nationworld/world/la-fg-oil23-2008jun23,0,6473287.story
Facing strong U.S. pressure and global dismay over oil prices, Saudi Arabia said today it will produce more crude this year if the market needs it. But the vague pledge fell far short of U.S. hopes for a specific increase and may do little to lower prices immediately.
For now, the current "oil shock" leaves Western countries with little choice but to move toward nuclear power and change their energy-consumption habits, Britain's prime minister warned at a rare meeting of oil-producing and consuming nations.
...
But the Saudi oil minister also blamed speculators and asserted supply is not the problem.
"In today's environment, I am convinced that supply and demand balances and crude oil production levels are not the primary drivers of the current market situation," al-Naimi said. Officials and energy executives from more than 35 countries thronged a large hall where he spoke.
King Abdullah also said Saudi Arabia is not the culprit.
The king cited several factors driving "the unjustified, swift rise in oil prices" including "speculators who play the market out of selfish interests," plus higher consumption by developing countries and higher taxes in some countries.
U.S. Energy Secretary Samuel Bodman, however, said earlier that U.S. officials had found no evidence speculators are driving up prices.
http://www.latimes.com/news/nationworld/world/la-fg-oil23-2008jun23,0,6473287.story
Facing strong U.S. pressure and global dismay over oil prices, Saudi Arabia said today it will produce more crude this year if the market needs it. But the vague pledge fell far short of U.S. hopes for a specific increase and may do little to lower prices immediately.
For now, the current "oil shock" leaves Western countries with little choice but to move toward nuclear power and change their energy-consumption habits, Britain's prime minister warned at a rare meeting of oil-producing and consuming nations.
...
But the Saudi oil minister also blamed speculators and asserted supply is not the problem.
"In today's environment, I am convinced that supply and demand balances and crude oil production levels are not the primary drivers of the current market situation," al-Naimi said. Officials and energy executives from more than 35 countries thronged a large hall where he spoke.
King Abdullah also said Saudi Arabia is not the culprit.
The king cited several factors driving "the unjustified, swift rise in oil prices" including "speculators who play the market out of selfish interests," plus higher consumption by developing countries and higher taxes in some countries.
U.S. Energy Secretary Samuel Bodman, however, said earlier that U.S. officials had found no evidence speculators are driving up prices.